RBC Opts Against Spinning Off U.S. Proprietary Trading Unit
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Royal Bank of Canada decided against spinning off its U.S. proprietary trading business into a hedge fund, leaving the lender to weigh alternatives to comply with looming banking regulations.
“We are actively working to restructure our proprietary trading business to comply with the Volcker Rule ahead of the July 2015 deadline,” Kevin Foster, a spokesman for Toronto-based Royal Bank, said in an e-mailed statement. “A spin-out of GAT in its current form will not proceed,” he said, referring to the Global Arbitrage and Trading unit.