- "For RBS [this] marks the end of the stand-alone global investment bank model," says CEO Ross McEwan. Royal Bank of Scotland (RBS -5.9%) will "substantially reduce" its investment banking operations in the U.S. and Asia, and fully exit markets businesses in Central and Eastern Europe, the Middle East, and Africa - a full 25 countries.
- CFO Ewen Stevenson says more than half of the roughly 2K jobs on the company's vast Stamford trading floor will be cut, and a review is set for whether that base is still needed.
- All that's left in sales and trading outside of the U.K. will be operations in Stamford (for now) and Singapore. There will also be a sales office in Japan and client coverage teams in a number of European countries.
- There are plenty of sellers today, but not everyone's a bear. Some analysts note these moves should improve capital ratios, and RBS's plan to return to being just a bank isn't exactly a new one - today's announcements just point to a speeded up the process.
- Management also warns there could be more fines coming for past misconduct.
- Previously: RBS reports annual loss on Citizens writedown (Feb. 26)