Summary of Two Recent Articles on Investment Banking

Royal Bank of Scotland (RBS) is likely to further cut jobs in its investment banking arm in view of shrinking profits and the Eurozone debt crisis. It has taken a loss on its Greek Government bond holdings and also sold most of its Italian bonds. 2000 jobs may be shed and the tough market conditions are making it harder for the bank to achieve a turnaround (Slater &amp. Kar-Gupta, 2011).
This article is related to Investment Banking because these actions by RBS have been necessitated by the debt crisis in Greece and Italy that has caused its losses and job cuts.
The bank reported a profit of £267 million or $426 million for Q3 which is 63 percent less than Q3 profit last year.
The bank did not announce any bonuses for its investment banking staff in Q3 because of the difficult situation in which it finds itself.
Article 2: Greece has a right to face austerity on its own terms.
This article is related to Investment Banking because it talks of the recent debt crisis that has enveloped the Eurozone countries and put Greece and Italy in the limelight as likely defaulters on debt.
In case any of the default, their economies would be hard to sustain in the long term.
The public has put the blame squarely on the politicians and corruption within Greece.&nbsp.&nbsp.

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