RBS loses traders to rivals as investment bank continues to shrink

RBS building

Royal Bank of Scotland has lost at least six senior debt traders and salesmen in the past month to rival firms as the British lender shrinks its investment bank and faces political pressure to reduce bonuses.

Bloomberg News reports that John Gousias, a trader in London, left this month for HSBC to help run its corporate-debt brokering business known as flow credit trading, Shani Halstead, an HSBC spokeswoman, said in an e-mail.

Cass Tokarski, who trades U.S. government-backed home-loan bonds known as collateralized mortgage obligations, will join Cantor Fitzgerald, while Alan Johannsen, who trades securities backed by assets other than mortgages, is taking a similar role at KGS-Alpha Capital Markets, according to people with knowledge of the moves, who asked not to be named because they haven’t been publicly announced.

RBS, which posted its largest annual loss since 2008 last year, is being weighed down by legal bills and risky assets that are still on its books five years after receiving the biggest bank bailout in history. Ross McEwan, who took over as chief executive officer in October, is combining divisions, scaling back the investment bank and cutting jobs.

To access the complete Bloomberg article hit the link below:

Wall Street Raids RBS for Debt Traders as McEwan Shrinks Lender

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