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View Full Version : RBS cash equities business to be canned.



SantaClaus
7th January 2012, 21:23
This one strikes a chord close to home having worked there (ABN) many years ago.

RBS to Close Cash Equities Unit With 1,200 Staff, Times Reports - Bloomberg (http://www.bloomberg.com/news/2012-01-07/rbs-to-close-cash-equities-unit-with-1-200-staff-times-reports.html)

Might be time for some people to start thinking about downsizing from Wandsworth to Peckham. :wink

AtW
7th January 2012, 21:25
Why would they close "Cash Equities" department rather than some tulip derivative on a triple A rated hot air exhausted by a bull department? :confused:

I don't know what they do but if anything investing into proper shares long term and paying cash for them upfront isn't something I'd have against, yet they want to close that?

I guess more money can be made using imaginary money with massively geared leverages.

Freamon
7th January 2012, 23:38
Why would they close "Cash Equities" department rather than some tulip derivative on a triple A rated hot air exhausted by a bull department? :confused:

Because the derivatives department makes more money?



I don't know what they do but if anything investing into proper shares long term and paying cash for them upfront isn't something I'd have against, yet they want to close that?

That's not what their cash equities business does.



I guess more money can be made using imaginary money with massively geared leverages.
Shares are imaginary money too.

AtW
8th January 2012, 00:19
That's not what their cash equities business does.

What does it do?

Gonzo
8th January 2012, 00:40
What does it do?

Research excellence

With more than 200 analysts around the world, we offer fund managers insights and investment ideas drawn from:

European analysts based in London, Amsterdam and Frankfurt
Asia analysts in India, China, Hong Kong, Taiwan, Singapore, Indonesia and South Korea
Stock coverage of the Middle East, Thailand and Malaysia
Specialists in a wide range of industries
These researchers cover more than 1,250 stocks, with a total market cap of more than USD13 trillion.

Global sales capability

We have more than 160 sales professionals in 16 locations around the world.

Our sales people develop a profound understanding of a fund manager’s portfolio and investment process. Doing so allows them to tailor advice to each client’s unique investment goals.

Our generalist sales people collaborate closely with our specialist sales teams. That means the stock recommendations they provide are also founded on in-depth, up-to-date knowledge of industry sectors.

Outstanding corporate access

As a leading provider of equity services, we have built strong relationships with many companies around the world.

These links mean we can introduce our cash equities clients to the companies whose stocks they hold. Such access allows fund managers to make intelligent decisions that are founded on first-hand familiarity with the businesses they invest in.

Trading and execution

We offer our clients equity execution capabilities in more than 60 countries, covering developed, emerging and frontier markets. RBS has an integrated execution business covering all channels – single stock, portfolio trading, electronic trading and Delta 1.

Our direct market access offers high levels of client service: quick, broad market coverage and a full range of order types, while allowing clients to execute anonymously in each environment.

linky (http://gbm.rbs.com/global-markets/equities/cash-equities)

Ordinary share trading in other words, with some advice added on top. Exactly the sort of things that you think investing should be about.

AtW
8th January 2012, 00:50
Ordinary share trading in other words, with some advice added on top. Exactly the sort of things that you think investing should be about.

WGS

Jeff Maginty
8th January 2012, 09:21
I guess more money can be made using imaginary money with massively geared leverages.

Especially when the taxpayer bails them out so that there is no downside for them!

:mad

Freamon
8th January 2012, 13:06
linky (http://gbm.rbs.com/global-markets/equities/cash-equities)

Ordinary share trading in other words, with some advice added on top. Exactly the sort of things that you think investing should be about.
Exactly. Their cash equities business is mostly involved in dealing on behalf of clients. Not buying shares on the firm's account, which is what AtW seemed to think.

Whether the cash equities department of a bank does actually act in the interests of its clients is a different debate.

SantaClaus
8th January 2012, 14:21
Why would they close "Cash Equities" department rather than some tulip derivative on a triple A rated hot air exhausted by a bull department? :confused:

I don't know what they do but if anything investing into proper shares long term and paying cash for them upfront isn't something I'd have against, yet they want to close that?

I guess more money can be made using imaginary money with massively geared leverages.

For once I agree with you. The cash equities business was "agency" rather than "proprietary" trading, which means they were simply acting as a broker on behalf of clients. They were not dealing in risky assets such as CDS, ABS, etc.

However, add the government to the equation and suddenly you start getting knee-jerk political reactions rather than business decisions.

AtW
8th January 2012, 15:02
Their cash equities business is mostly involved in dealing on behalf of clients.

So an "investment" bank does not have clients that buy shares for real money then?

Freamon
8th January 2012, 17:39
So an "investment" bank does not have clients that buy shares for real money then?
Yes, it does, exactly as I said. :confused::confused:

AtW
8th January 2012, 17:41
Yes, it does, exactly as I said. :confused::confused:

Why are they closing department used for it then?

Freamon
8th January 2012, 18:12
Why are they closing department used for it then?
I don't know, but I already had a stab at an answer in the post above.