Following Stephen Hester's departure yesterday, the 82 per cent state-owned Royal Bank of Scotland is expected to announce 2,000 job losses worldwide later, with some going in the UK.
The bank released a statement this morning saying,
As announced at our 2012 full year results, we said we would take steps to reduce the balance sheet of the Markets business to below £80bn, on a Basel III basis by the end of 2014.
Today we are announcing the changes we will make to meet that target so that with increased capital efficiency we can provide clients with the products they need while enabling the Markets division of RBS to be profitable and sustainable.
Shares have opened down 4.5 per cent on the news.
The bank added that it would be focusing on its markets division and core fixed income, concentrating risk management into four main trading hubs in London, Stamford, Singapore and Tokyo, and exiting all structured retail investor products and equity derivatives.
Ex-minister Lord Myners has also said the decision to oust Hester was made according to Chancellor George Osborne's wishes.