Royal Bank of Scotland has become the latest overseas bank in the US to shrink its business as it proposed to cut its mortgage trading business by two-thirds. The British bank will eliminate hundreds of jobs in the US over the course of two years as part of an effort to reduce its assets ahead of new rules set out by the US Federal Reserve. An RBS spokesperson said as the financial services industry continues to evolve so must RBS’s US corporate and institutional banking business and the bank’s ultimate goals are to enhance its client focus and connectivity, simplify its operating model, mitigate risk and reduce cost. The RBS cuts primarily affect the non-agency mortgage business, and the British bank is expected to retain its securitization and agency mortgage business.
