Jefferies to acquire RBS's corporate broking arm

It may be a sign of the times, in economic terms, or perhaps simply the result of US banks having moved first to clear their balance sheets, but another of the City's oldest institutions - Hoare Govett - looks set to fall into US hands.

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It may be a sign of the times, in economic terms, or perhaps simply the result of US banks having moved first to clear their balance sheets, but another of the City's oldest institutions - Hoare Govett - looks set to fall into US hands.

US investment bank Jefferies is close to buying Royal Bank of Scotland's corporate broking arm Hoare Govett, a person familiar with the matter said on Wednesday, according to a report in Bloomberg.

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As well, Bloomberg reports that Jefferies will pay only a nominal amount to buy Hoare Govett and that RBS has offered to provide funds to cover some staff costs.

AB

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