More than 3800 investment banking jobs will be cut towards the end of 2013 by the Royal Bank of Scotland. 3000 jobs will go this year. 300 more than previously anticipated, according to slides released by the bank ahead of an investor presentation
RBS has abandoned ambitions to be a top global investment bank, bowing to government pressure to exit riskier operations and prepare for tougher international regulations.
The bank announced in January that it would cut 3,500 jobs in its investment banking division.
Of that total, 3,000 will go by the end of this year. Chief Executive Stephen Hester had already axed 34,000 jobs since arriving at RBS in 2008.
In a presentation to investors later on Monday, John Hourican, the head of RBS's markets and international banking business, will tell investors the bank's plans to exit its loss-making cash equities, corporate broking, equity capital markets and mergers and acquisitions businesses are on track.
A recent study said up to 15 percent of the 500,000 jobs in investment banking around the world could disappear in the next five years due to the euro zone crisis and stiffer regulation.
The bank is under investigation by U.S. and UK authorities into its role in an interest rate-rigging scandal and faces punishment over possible breaches of sanctions against Iran.
82 percent of the Royal Bank of Scotland is under ownership of the British government after being rescued during the 2008 credit crisis.
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