RBS set to scale back its investment arm

Royal Bank of Scotland will hand restructuring chief Rory Cullinan the task of overseeing another major scaling back of its investment bank, sources told Reuters, allowing it to focus on lending to British households and businesses.

Mr Cullinan will take over responsibility for RBS’s investment bank from Donald Workman, currently executive chairman for corporate and institutional banking.

Mr Cullinan already runs RBS’s internal ‘bad bank’ and is overseeing the sale of its US business Citizens and its Williams & Glynn business in Britain. The bank, 79%-owned by the UK government, is under pressure from MPs to do more to support the domestic economy.