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RBS Securities Capitulation a Blueprint for Banks in Europe

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Royal Bank of Scotland Group Plc’s decision to cut its European investment bank by more than a quarter may kick-start a wider shake-up among its rivals in the region as a fee drought and greater regulation force middle-ranking firms to shrink their operations.

RBS, the U.K.’s largest government-owned bank, said yesterday it will sell or close its equities, mergers advisory and equity capital markets businesses, eliminating 3,500 jobs. UniCredit SpA, which in November shut part of its equities unit, Nomura Holdings Inc. and UBS AG are also pulling back.