The securities arm of British banking major Royal Bank of Scotland (RBS) is set to shut down its US mortgage trading operations.
Following the move, the bank’s securities division will cease to participate in US mortgage trading business and will slash hundreds of jobs over the next two years.
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The UK lender had earlier planned to shrink the business by two-thirds.
However, the bank will retain its non-mortgage asset backed securities team.
A spokesperson of RBS said, "Exiting mortgage backed-security, commercial real estate and commercial mortgage-bond sales and trading is a necessary part of repositioning our US business."
"We continually evaluate all aspects of our business on a regular basis to ensure we are strategically positioned to deliver optimal results to our clients and shareholders," he added.
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By GlobalDataRBS was slapped a penalty of $344m by the UK’s regulator and $290m by US authorities for rigging currency market.
