The Royal Bank of Scotland, which has its North American headquarters in Stamford, will eliminate hundreds of jobs in its U.S. trading divisions as the company faces regulatory changes and stringent oversight by the Federal Reserve, according to The Wall Street Journal.
RBS is set to begin laying off as many as 400 employees over the next 18 months in the U.S., according to the WSJ.
Under the new rules imposed by the Federal Reserve, foreign-owned banks are expected to have a higher capital and liquidity level, submit to annual stress tests and provide greater oversight if they have at least $50 billion in U.S. assets, the WSJ reported.
Sources say RBS plans to cut $10 billion by the beginning of next year to get under the $50 billion benchmark and focus on its U.K. market, the WSJ reported.
The company’s U.S. business employs about 2,400 people, according to the WSJ. RBS is 80 percent owned by the British government.
