RBS winds down unit as it scales back investment bank

RBS building

Royal Bank of Scotland is winding down a distressed-debt unit as it scales back its investment bank to revive profitability, according to three people familiar with the matter.

Bloomberg News reports that Jon Weiss, who was appointed global head of a special situations group after joining RBS’s Stamford, Connecticut, office in 2008, left this month, the people said. His departure comes as the firm sells off some of its riskier investments and prepares to cut the distressed unit, two of the people said.

RBS faces political pressure to reduce bonuses and is shrinking its U.S. investment bank before stiffer capital rules are implemented. Richard Dalessio, who was a director in the U.S. special situations unit, exited last month to join Jefferies LLC, people familiar with the matter said at the time.

'We are materially reducing our special situations group', Sarah Lukashok, a spokeswoman for RBS, said in a telephone interview. Weiss couldn’t immediately be reached.

To access the complete Bloomberg News article hit the link below:

RBS Said to Be Unwinding Distressed Unit as Head Departs

Metro Said to Hire Deutsche Bank to Advise on Unit

Bank Workers CharityBank Workers Charity - Supporting bank workers

Register for Financial Markets News Alerts