Royal Bank of Scotland has made comprehensive cuts to the real estate and property-related securitization businesses in European corporate and investment banking, and it has included its newly purchased bank – ABN Amro – in the process.
The sharpest cuts were felt in the hard-hit securitization sector, where bond volumes have plummeted as investors shun the market, especially where there is real estate risk involved. Just as the securitization exit for real estate lending has evaporated, European real estate valuations have fallen – especially in the UK.
"Like every other bank, RBS is making sure that we have the right-size teams for the current environment," an RBS spokesman said. He would not be drawn on the size of specific reductions.
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