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RBS decides the quantum of cut and roll

LONDON, ENGLAND - SEPTEMBER 01:  Climate chang...

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3500 jobs would be cut as RBS cts its Corporate investment bank by upto $450 bln, first a minimum of GBP 120 bln or $ 184 bln

RBS would be trying to sell its UK and Aussie brokerage operations, keeping the ones in Asia. Bloomberg estimates a larger 55500 jobs. the bank immediately sliced up 272 jobs in London (UK) the 13,500 strong would thus lose as much as 25% of its workforce under government’s pressure as an exaample of good ringfencing and control on ibvestment banking operations int he regulation  which allow international lenders leeway on risk premiums in Capital allocations restricting extra allocations to exposures affecting UK health

RBS has cut 30,000 jobs before today as it continued bleeding $50 bln post September 2008 when it was the second UK entity to be bailed out by the local government, which now holds 83% equity in the bank

Its Irish unit will make small job cuts for a EUR 50 mln savings concurrently Yesterday’s news flow from the bank talked of a stand off on bonuses concurrent to the job cuts with Chief John Hourican sure about his $6 mln payout from 2009 deferred

As told to Bloomberg, the bank wants to shut down its entire Cash equities and M& A advisory businesses. The bank will obviously sell it by georgaphy and separate buyers may yet be found even as the bank could not find any for all the divestment it needs to make the UK government happy and stay within the rin gof retail banking and lending i.e. personal loans and small business lending


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One comment on “RBS decides the quantum of cut and roll

  1. Pingback: RBS sale of Asia Assets | Banking Insight – Deal Insight | The Banking and Strategy Initiative

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This entry was posted on January 12, 2012 by in Banking, Dealbook, Global and tagged , , , , , , , .


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