Report - Top Firm's Investment Banking Unit May Shrink Further

Honey I Shrunk The Banks

Honey, they may shrink the bank (again).

Royal Bank of Scotland will face pressure to further shrink its investment bank should an investigation into interest rate rigging show cultural failings persist in the business, political and industry sources have said.

John Hourican, head of RBS's investment bank, and Peter Nielsen, head of markets, may be asked to leave the bank when the settlement is announced, possibly as early as next week, two sources have told Reuters.

Negotiations over the settlement may roll into the week beginning January 28, however, sources have said.

Chief Executive Stephen Hester has warned of a 'miserable day' for RBS when the punishments are meted out, and the bank is braced for the publication of embarrassing emails exposing the extent of collusion between traders.

Hit the link below to access the complete Reuters article:

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