Royal Bank of Scotland to split investment bank in two
Royal Bank of Scotland (RBS) is planning to divide its investment bank into two separate divisions, according to reports.
Royal Bank of Scotland (RBS) is planning to divide its investment bank into two separate divisions, according to reports.
The transformation would see the RBS's markets business split from its international banking division.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The international banking group will be run by John Owen, according to Sky News.
The heads of the two divisions would report directly to Group Chief Executive Stephen Hester.
As part of the changes, John Hourican, the Chief Executive of markets and international banking at RBS, would resign from the bank.
The split is reportedly aimed at reducing the duplication of some functions that exist under the current structure and help in making faster strategic decisions.
The company's markets and international banking division was formed a year ago when the bank streamlined its global banking and markets business following news it was exiting areas including corporate banking and cash equities.
The news of the split was unveiled in the lead up to bank's settlement with UK and US regulators over alleged interest rate rigging. RBS is expected to be fined £500m as part of the settlement.
RBS would not confirm the plans when Sharecast and Digital reached the bank for comment.
"We can't say. There has obviously been a lot of press speculation on the possible timing of the Libor settlement but it is too early for us to say," a spokesman said.
Discussions in regards to the Libor case are ongoing, he added.
In the wake of the lawsuit there were reports circulating that Nielsen might also be leaving the bank. However, the latest media refute the claims.
Shares were up 2.48% to 367.70p at 14:54 Monday.
RD
-
‘Sandwich generation’ carers losing £6,000 a year to support elderly relativesMiddle-aged adults are often caught between caring for children or grandchildren and their elderly parents, leaving them taking time out of the workforce and facing a huge hit to wages while they are still trying to save for retirement. We look at the true cost of caring.
-
Ground rents to be capped at £250 a year – what does it mean for you?The government has published draft legislation which would see ground rents capped at £250 per year for leaseholders. We examine what it means for homeowners and the housing market.
