Hoare Govett staff could learn fate this week
Chief executive Stephen Hester is reviewing RBS’s vast investment banking operation, with expectations that as many as 5,000 jobs could be axed globally.
As part of the restructure, the bank is seeking to offload its Hoare Govett corporate finance arm, which was acquired as part of the doomed takeover of Dutch bank ABN Amro.
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Hide AdAccording to reports at the weekend, RBS is offering a sweetener to potential buyers – believed to include Oriel Securities – in a bid to offload the unit. The business will likely be closed if a swift sale cannot be achieved.
An RBS spokesman last night declined to comment, but sources say Hester could make his plans for the investment banking division known as early as this week.
The potential sale of Hoare Govett comes at a difficult time for stockbroking outfits, which are under pressure because of the recent drought in stock market flotations and fund-raising exercises.
It is rumoured that Panmure Gordon is in talks over a possible sale to Cenkos Securities, while some institutions have decided to pull out of the stockbroking business.
As well as the Hoare Govett brand, the future of RBS’s cash equities, research and equity capital markets divisions is uncertain.