More colour on this morning's RBS job abomination rumours.
Bloomberg claims that the bank is contemplating shutting or selling its equities unit, ‘including’ – but not limited to – Hoare Govett. The implication is that the entire business will be closed.
This seems a little weird given that RBS has been building its equities unit recently. In June, we were told it had around 12 equity research roles to fill in London alone. In August, Financial News said RBS was hiring in equities, “for all functions and in all regions.” In September, it made some senior equities hires in Asia.
According to Bloomberg, RBS has 1,000 people in its equities business and will make an announcement about their future before its full year results in February. Equities headhunters say the rumour about a major equities downsizing has been in the market for sometime, but hasn’t been given much credence. “They’ve hired a lot of very, very senior people and shutting the business would seem a strange thing to do,” says one.
RBS declined to comment on the rumours. However, its results suggest the equities build out may not be going entirely to plan. In 2009, revenues in cash equities were £1.5bn; in 2010 they were £933m; this year, they are on track to be around £730m. At only 12% of revenues in the Global Banking and Markets division and one of its smallest business areas, it’s easy to see why cash equities might seem the easiest thing for RBS to sacrifice. However, other businesses would also need to be shuttered to satisfy the Telegraph's claim that RBS is thinking of closing 'half' its GBM business areas.
Don’t expect to get hired by RBC. (Bloomberg)
Goldman Sachs: top in all areas of investment banking. (Bloomberg)
Brevan Howard, BlueCrest Capital and Winton Capital will be paying their tiny cliques of top partners $3bn this year. (Financial Times)
There’s a pay freeze for the top 1,000 people at Lloyds and their bonuses are being cut by 10%. (Sunday Times)
Soros Fund Management has made some not especially large redundancies. (FinAlternatives)
National Australian Bank has returned to Dublinand may even hire someone. (The Sunday Times)
The ‘Green Investment Bank’ will create 75 jobs and be based in Stoke-on-Trent, Liverpool, London, Edinburgh, Bristol, Nottingham or Newcastle. (The Sunday Times)
Climate Change Capital is about to taken over by Bunge. (The Sunday Times)
Kweku Adoboli has dumped his old lawyer. (Dealbook)
Adoboli’s new lawyers, Bark & Co, specialists in complex fraud and tax compliance, has been acting for Asil Nadir, a British businessman facing multi-million pound fraud charges after the collapse of his Polly Peck fruit-to-electronics group. (Reuters)
Are Barclays Capital, Bank of America and Morgan Stanley facilitating massive dividend arbitrage to ‘cheat’ French and German taxpayers? (Guardian)
German banks will need to raise a lot of money in 2012. (Creditwritedowns)
Vickers legislation will be enshrined in law by 2015, but still not enforced until 2019. (Bloomberg)
Michael Platt, the founder of the $30 billion hedge fund BlueCrest Capital Management LLP, said most of the banks in Europe are insolvent and the situation will worsen in 2012 as the region’s debt crisis accelerates. (Bloomberg)