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.
Peter Nielsen, the Chief Executive of the current markets business, will co-head the new markets unit together with Suneel Kamlani, the Deputy Chief Executive of markets and international banking, the Financial Times reported.
Subscribe to 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
-
Which investment trusts could benefit from lower interest rates?As vehicles for long-term investments, many investment trusts were hit when interest rates rose in 2022. With interest rates expected to fall by the end of the year, could now be the time to invest in one of these unloved sectors?
-
How to protect your personal and financial data from cyber attacksM&S and the Co-op are the latest retailers to suffer from cyber hacks but consumers also need to be vigilant
