RBS traders to be tossed

The Royal Bank of Scotland, Britain’s largest stateowned lender, will eliminate hundreds of US jobs as it shrinks its mortgage-trading business ahead of stiffer capital rules.

The bank will cut its mortgage-trading business by twothirds within the next 12 to 18 months, Scott Eichel, head of securitized products and credit in the US said Tuesday.

The bank is scrambling to cut assets in the US ahead of planned rules that will force foreign banks to thicken their capital cushions, face yearly stress tests and be subject to morerigorous oversight from the Federal Reserve