Royal Bank of Scotland (RBS) is reportedly planning to slash the assets by more than halve in its broker-dealer operation in US in response to new rules from the Federal Reserve, the Financial Times has reported.
The new law, which will come into force in the second half of the decade, requires foreign banking firms with more than $50bn of assets to set up a holding company and comply with tough capital and leverage requirements.
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RBS Securities, the broker-dealer operation of RBS in the US, had assets worth more than $100 billion as of June 2013.
According to the FT report, RBS is planning to wind down some operations and book some business in other entities to retain its broker-dealer operation in the US.
The Fed requirements would still affected operation of foreign banks with at least US$10 billion of assets, but these conditions are less harsh.
German banking giant Deutsche Bank has also prepared plans to cut its US assets by up to a quarter, largely through reassigning operations to Europe or Asia.
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