Posted on 03/04/2015 7:07:19 AM PST by SeekAndFind
"RBS has been a bruising place to work ... and that doesn't sit well with me," the Royal Bank of Scotland CEO McEwan said on Thursday. "We will work hard to make [RBS] a much better place for our people."
McEwan mentioned on a conference call last week that there would be "substantial job losses" and that "we haven't got a number out there because we've got a lot of consultation to do with our people."
Little did his staff know that this meant about three out of four people working in the investment banking part of the bank would be out of a job.
According to a report in the Financial Times, RBS will cut about 14,000 investment bank jobs in the US and Asia by 2019. This is about three-quarters of the total investment bank workforce, which stands at 18,000. However, the bank employs 118,000 people worldwide across all units.
The FT report, which cited two unnamed sources, added that the firm planned to automate its back-office services. This would make most employees in the back office redundant.
RBS' representatives were not immediately outside office hours for comment.
On Thursday, RBS booked a £3.5 ($5.4) billion loss in 2014 but said it paid £421 ($64.5) million in bonuses that year. While the bonus pool is 21% smaller than 2013 and McEwan rejected a £1 ($1.5) million bonus, RBS is dogged by a litany of litigation issues.
(Excerpt) Read more at businessinsider.com ...
Back around 2000, RBS was attempting a big grow-and-expand period. They had various gimmicks (credit cards, investment deals, retirement accounts, etc). At the time, you got the idea that they were hoping to be bought by someone within a couple of years. Never happened though.
So, is this one of the banks that secretly rules the world?
Those peeps just need to start manufacturing derivatives from home.
Winner-take-all economics means even investment bankers get insourced by automation and probably outsourced to India. Since the real economy is in a deflationary death-spiral, the fake financial ponzi-scheme economy needs to start increasing efficiencies through consolidation and cost cutting to match the reality that the market is now an extension of central banking.
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