(Reuters) - State-backed Royal Bank of Scotland Group Plc is shuttering a distressed-debt unit as it continues to shrink its investment bank, Bloomberg reported, citing three people familiar with the matter.
“We are materially reducing our special situations group,” Bloomberg quoted RBS spokeswoman Sarah Lukashok as saying. RBS did not respond immediately to a request for comment made by Reuters.
Distressed debt involves the purchase of the debt of companies in or near bankruptcy at a deep discount.
The lender has been scaling back its investment banking and international operations, giving in to demands from politicians that it focus on lending to British households and businesses, sources told Reuters in February.
Reporting by Richa Naidu in Bangalore; Editing by Steve Orlofsky