RBS said mulling over merging investment bank, new CEO may come from within

Another radical restructuring ?

The Financial Times reports that Royal Bank of Scotland is shaping up for another radical restructuring as the bank wrestles with the challenge of finding a new CEO.

According to the newspaper, RBS is weighing an idea to dispense with its freestanding investment banking operation and may integrate it with the group’s corporate banking unit, according to two people familiar with the idea.

If enacted, it could prompt the departure of current co-heads of the so-called markets business, Peter Nielsen and Suneel Kamlani, the people said, with management likely to be consolidated with the leadership of the corporate bank.

The newspaper also reports that it's increasingly likely that the successor to CEO Stephen Hester will come from within.

There were high hopes at the bank that a big-hitting outsider could be drafted in to oversee the next stage of RBS’s recovery. But the leading external candidate – BlackRock's Mark McCombe – has withdrawn from the race.

Two people familiar with the recruitment process also said David Roberts, the Lloyds board member who is the other leading external option for the RBS chief executive job, had also pulled out of the race.

RBS weighs idea for its investment banking unit (subscriber content)

RBS must look to itself as search for new chief hits obstacles (subscriber content)


image: © Elliot Brown

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