Bladewatch.com

http://www.independent.co.uk/news/business/news/rbs-rank-and-file-braced-for-further-job-cuts-805423.html

Royal Bank of Scotland is set to announce the third tier of job cuts in relation to its takeover of the Dutch bank ABN Amro in the next two weeks. The third phase will affect rank and file bankers after most management positions were settled in previous announcements.

One of the areas of the combined bank that is set to come under pressure is the leveraged debt division. The market for leveraged loans, high-yield bonds and highly geared property transactions has all but ground to a halt since the onset of the credit crisis last year, forcing banks to collectively write down billions of pounds worth of deals. Both banks had active departments in the market before it dived last summer, leaving them with exposure to transactions it could not sell. As a result, management at RBS and ABN Amro, and other banks, have been more selective in the deals they are willing to underwrite.

It is understood that the combined bank plans to cut leveraged finance jobs and will eventually have fewer people than either bank employed separately. Spokespeople for both banks declined to say whether leveraged debt jobs would be cut.

We’ll have to see if there are any announcements relating to job cuts, whether they are related to the integration of ABN Amro or the recent reported economic issues within the banking sector will be difficult to tell. An interesting article, do check it out.

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