Firm Staff Have 45 Days To Save Their Jobs
According to the newspaper, RBS has no less than 118 initiatives looking at the integration of the two banks' wholesale banking operations, including reviewing whether to continue ABN's equity capital markets jv with Rothschild, and a possible sale of the Hoare Govett corporate broking unit. And within 45 days, so the story goes, RBS will present its transition plan to De Nederlandsche Bank, the Dutch Central Bank. Job cuts, however, will not take place until April at the earliest as there will be a need for consultation with regulators and Dutch workers' councils.
There have been concerns expressed that RBS has overpaid for its parts of ABN, and there are worries that wholesale banking in particular is heading for a slowdown following the recent market turmoil. RBS has, however, flagged up cost and synergy saving of some $2.55bn, and investors will be watching carefully over the coming months to ensure that the bank makes good on its promises. Although there is unlikely to be mass redundancies as the two wholesale units come together, many feel that hundreds of jobs are likely to go in the City.
The combined wholesale banking operation will become the largest in Europe, and the fifth largest in North America. Overall, RBS is taking on 30,000 ABN employees, making the Scottish bank number one in Europe for corporate banking and number five in commercial banking in Asia-Pac. It also will be one of the top five players globally in transaction services.