Royal Bank of Scotland’s investment banking arm has cut back its structured finance operations in the US after a slump in demand amid the subprime mortgage turmoil – marking a sharp reversal from the expansion of recent years. In a sign of how quickly investment banks are moving to scale back businesses affected by subprime upheavals, RBS said it had shed a quarter of the just over 20 staff on its CDO team, which repackages MBS and other instruments. Rick Caplan, co-head of CDOs at RBS Greenwich Capital in the US, left two weeks ago as a result of the cutbacks.

This entry was posted by Gwen Robinson on Thursday, August 30th, 2007 at 5:40 and is filed under Capital markets, People. Tagged with rbs. Edit this entry.