Another day, another dreadful third-quarter results announcement from another bank. RBS has announced a pre-tax loss of £634m for the quarter, while generating headlines in the UK for its plan to create an internal “bad bank”, ring-fencing £38bn of bad assets.
But while the bank’s chief executive, Ross McEwan, talked openly about the financial numbers, he refused to say whether more heavy job cuts were on the cards. Unfortunately for RBS staff, they probably are.
Sky News, citing sources, reports that RBS is undertaking a wide-ranging review of its entire network, assisted by the management consultancy Bain & Co. The review could trigger substantial cost reductions, including “inevitable” redundancies, especially in the firm’s shrinking investment banking arm. RBS has already cut tens of thousands jobs since its taxpayer bail-out.
RBS employees potentially face an anxious few months. The RBS sources told Sky that McEwan is expected to detail plans for further redundancies when he reveals the firm’s full-year results in February.
If there’s a safe haven for jobs within RBS, it might be its private banking arm, Coutts. The RBS insiders said Coutts will escape any “substantive action” from the structural review. With private banking facing a skills shortage, particularly in Singapore and Hong Kong where Coutts has offices, RBS investment bankers may want to ponder a change of career, and country.
The Establishment has returned to the comforting conviction that the City is golden-egg laying goose, and not a Trojan Horse. (BBC)
The best and brightest are turning away from Wall Street. (CNBC)
Expect non-revenue generators and middling front office employees to see their bonuses hijacked by rock star bankers. (Bloomberg)
Pimco founder Bill Gross is calling on the 1% to do what’s right: agree to pay higher taxes. (Business Insider)
Hedge fund RG Investment Capital has reportedly shut its doors. (FIN Alternatives)
The most obnoxious bars on Wall Street. (Business Insider)