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Report: RBS to sack hundreds of investment staff

RBS plunged into the red by £5.2 billion in 2012 after a dire year for the group. Credit: Reuters

Taxpayer-backed Royal Bank of Scotland is reportedly poised to slash hundreds more jobs to further shrink its investment banking division under plans to boost its balance sheet.

RBS is also looking to offload around £60 billion of assets from the markets division after the Bank of England last week said UK banks were collectively facing a £25 billion capital shortfall, according to The Sunday Times.

It is thought RBS has the biggest capital hole of all the banks, at around £6 billion.

RBS is understood to be planning more drastic cuts at its investment banking business in an effort to meet the new target set by the Bank's Financial Policy Committee (FPC).

RBS declined to comment on today's report.