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Wed May 28, 2014
Reports: Royal Bank of Scotland to Slash Hundreds of U.S. Jobs
The Royal Bank of Scotland could lay off hundreds of its U.S. employees, according to new reports. The company has its North American headquarters in Stamford.
Newspaper reports on both sides of the Atlantic -- in The Wall Street Journal and The Financial Times -- quote unnamed sources saying that RBS is preparing to eliminate hundreds of jobs in the U.S.
The changes are reported to be in preparation for new regulatory oversight by the Federal Reserve. The new rules mean that foreign-owned banks with at least $50 billion in assets here will be required to keep higher levels of capital on hand, and undergo regular stress tests. It's rumored that RBS plans to shrink its presence in the U.S. to get under that $50 billion threshold and escape the requirements.
RBS employs about 2,400 people in its U.S. divisions, hundreds of them at its Stamford headquarters, and it also has a credit card operation in Bridgeport. The newspaper reports estimate as many as 400 jobs could go.
The company hasn't confirmed its specific plans, but it did issue a statement saying that "as the financial services industry continues to evolve, so must RBS's U.S. corporate and institutional banking business."