Rothschild to merge British and French assets – FT
LONDON (Reuters) – The Rothschild banking dynasty is to fully merge its operations in France and Britain under one holding company, the Financial Times reported on Thursday.
The newspaper said the family aims to boost regulatory capital at a time when the investment-banking industry is fighting to adapt to tougher regulation and economic slowdown in Europe. David de Rothschild, who will become chairman of the merged group, is quoted by the FT as saying the restructuring would “allow the group to become more competitive against rivals while ensuring the family’s control over the group in the long-term.”
Regulatory capital will be “significantly enhanced” to prepare for tougher requirements under the Basel III regime, the FT said.
The race to adapt to the new Basel rules, designed to crack down on banks’ risk-taking in the wake of the 2008 financial crisis, has seen banks across the industry slash jobs and sell assets to cut costs and shrink their balance sheets.
(Reporting by Stephen Mangan; Editing by Michael Perry)