RBS Is Gonna Try Something New

For the last seven years, the bank has reported an annual loss. Unhappy with this outcome, the upper echelons of management apparently put their heads together and said, "What if every time we had an impulse to do one thing, we did the opposite?"
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So far Project Maybe If We Follow None of Our Instincts We Could Make Some Money For Once has been relegated to size but if it works out the executive dining room will soon be substituting porridge for Denny's Grand Slams.

The Royal Bank of Scotland on Thursday reported its seventh annual loss, and announced that it would once again drastically shrink its global investment bank. R.B.S., based in Edinburgh, will reduce its geographic footprint to about 13 countries from 38, incurring significant job losses, including in the United States. Risk-weighted assets will be reduced by two-thirds, from 107 billion pounds, about $166 billion, to £35 billion to £40 billion in 2019. “This is a plan for a smaller, more focused, but ultimately more valuable, bank with the vast majority of its assets in the U.K., and for R.B.S. marks the end of the stand-alone global investment bank model,” the bank’s chief executive, Ross McEwan, said.

With 7th Annual Loss, R.B.S. Announces Drastic Restructuring [Dealbook]

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Layoffs/Hiring Watch '12: RBS

The bad news is that 600 of the Queen's corgis are being let go. The good news, while it probably comes as little solace to those who will no longer receive birthday chickens, is that 300 or so new ones will be hired in their place. State-backed lender Royal Bank of Scotland is making more than 600 staff redundant as a result of legislation due to come into force at the end of the year, bringing total staff reductions at the bank since its 2008 bailout to around 36,000. RBS, 82 percent owned by the government, said the jobs would go as a result of new UK rules requiring retail financial products such as savings and investment vehicles to be sold by more highly qualified staff and charged a fee. "As a response to this we will be reducing the number of roles by 618 across the UK and creating 351 new roles," an RBS spokesman said on Tuesday. "Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support. We continue to make efficiencies across our business to deliver greater value toour customers and shareholders," the spokesman added. RBS Job Loss Hits 36,000 [Reuters]