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Lazard to assist RBS in scale down

Lazard has been recruited to help the Royal Bank of Scotland (RBS) in its attempts to reduce the size of its investment banking division.

According to a source close to the agreement between the investment financier and RBS, the latter company is determined to forge ahead with plans to scale back certain areas of its operations in the near future, Reuters reports.

Towards the end of last year, it emerged senior officials at the state-owned bank were considering the implementation of up to 18,900 job cuts in its investment arm as they look to restructure in the wake of the global economic downturn.

And the insider told the news source that discussions involving RBS and Lazard are "part of the ongoing review that was launched in November and include options to sell parts of the business".

It is believed the financier is looking to cut this part of its Global Banking and Markets business by up to 50 per cent.

By Asim Shah