Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

RBS Said to Be Unwinding Distressed Unit as Head Departs

July 17 (Bloomberg) -- Royal Bank of Scotland Group Plc, Britain’s largest state-owned lender, is winding down a distressed-debt unit as it scales back its investment bank to revive profitability, according to three people familiar with the matter.

Jon Weiss, who was appointed global head of a special situations group after joining RBS’s Stamford, Connecticut, office in 2008, left this month, the people said. His departure comes as the firm sells off some of its riskier investments and prepares to cut the distressed unit, two of the people said.

RBS, based in Edinburgh, faces political pressure to reduce bonuses and is shrinking its U.S. investment bank before stiffer capital rules are implemented. Richard Dalessio, who was a director in the U.S. special situations unit, exited last month to join Jefferies LLC, people familiar with the matter said at the time.

“We are materially reducing our special situations group,” Sarah Lukashok, a spokeswoman for RBS, said in a telephone interview. Weiss couldn’t immediately be reached.

Weiss joined RBS from Bear Stearns Cos., where he’d worked since 1999, according to Financial Industry Regulatory Authority records. He was promoted to head the special situations group in 2012.

Dollar-denominated distressed debt has returned 276 percent since the end of 2008, and 6.9 percent this year, according to Bank of America Merrill Lynch index data.

To contact the reporters on this story: Nabila Ahmed in New York at nahmed54@bloomberg.net; Lisa Abramowicz in New York at labramowicz@bloomberg.net

To contact the editors responsible for this story: Shannon D. Harrington at sharrington6@bloomberg.net Caroline Salas Gage

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.