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A Royal Bank of Canada sign in downtown Toronto.
A Royal Bank of Canada sign in downtown Toronto.
(MARK BLINCH/REUTERS)

RBC faces few options but to spin off U.S. trading unit

It is decision time for Royal Bank of Canada on what to do with its proprietary trading group, with the bank likely to spin off a group of traders who have for years brought in an outsized chunk of revenue.

Tuesday brings a long-awaited final draft of the Volcker rule – containing almost 1,000 pages of rules and explanations – the nub of which is that banks operating in the U.S. will be banned from proprietary trading, ie. trading the house money for profit.