Royal Bank of Scotland (RBS) has pulled out of the retail structured product market due to high capital costs.
The move is part of the bank's steps to reduce the balance sheet of the markets business to below £80bn by the end of 2014. It is also exiting equity derivatives as well as peripheral market-making activities. These businesses along with the structured products part will be moved into a run-off organisation managed within RBS' markets team, where they will be divested through a combination of restructuring, asset sales and business sales where possible. RBS said it remains committed to delivering on its existing obligations to customers. In a statement RBS said its markets divis...
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