RBS contraction could kickstart trend

ROYAL Bank of Scotland’s decision to cut jobs at its investment bank, RBS Securities, by more than a quarter may kickstart a wider shake-up among its rivals.

Plans by RBS to shed 3,500 staff by closing its equities, mergers advisory and equity capital markets businesses is part of a trend among similar sized banks. Hit by a fee drought and costly new regulations, UniCredit shut part of its equities unit. Nomura Holdings and UBS are also pulling back.

Other banks with securities arms may soon follow suit due to the same reasons, say analysts.