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"It is a disgrace that while on a daily basis stories are emerging about the massive bonuses at the top of the bank, increasing numbers of jobs are being cut from amongst the hard working staff," he said.

The changes include considering the sale or closure of its cash equities, equity capital markets and mergers and acquisitions businesses, which had income of around 220m in the nine months to September and are currently unprofitable.

The latest round of job cuts come on top of 2,000 losses announced by the bank last summer. The new losses will mean nearly 11,000 posts have been cut at GBM from the pre banking crisis headcount of 24,000.

Taxpayer backed Royal Bank of Scotland today announced around 3,500 job losses over the next three years in a bid to downsize its investment banking arm.

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A binding vote for shareholders on executive salaries formed part of a proposal unveiled by David Cameron for a Government blitz on pay and bonuses in the City.

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Its range of work with companies and governments spans from refinancing contracts for Anglian Water, Gatwick Airport and Tesco to debt issues for Finland.

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The bank also said it was considering the sale of its corporate broking arm, renowned City broker Hoare Govett, which offers independent market advice to 100 listed companies, including 11 of the FTSE 100 index.

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While the downsizing of GBM satisfies Mr Osborne's desire for RBS to scale back riskier activities, the revelation that Mr Hourican is set to receive a hefty performance related payout will embarrass the Prime Minister who last weekend promised a crackdown on executive pay.

The move at Global Banking and Markets (GBM), which has employees in Stoke, Edinburgh, London, and a small team of 100 employees in Manchester, follows Government pressure for the 83 per cent state owned bank Nike Crop Top Womens

to pull back from its ambitions to be a global investment player.

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the UK.

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Meanwhile, the bank said it would restructure GBM and cash management division Global Transaction Services (GTS), by splitting the businesses into two new divisions Markets and International Banking.

David Fleming, Unite national officer, said RBS's decision to reduce the headcount at GBM was "staggering".

The FSA blamed deficiencies in the management and culture at RBS prior to its 45.5 bn bailout and called for tougher rules Nike Mens Jackets

Chancellor George Osborne recently said the bank could "go further" in its reforms and would shift its business strategy towards personal banking, small businesses and corporate banking in Nike Crop Top Shirt

The job losses come amid reports that John Hourican, the head of GBM who will continue to oversee the restructuring of the business, is in line to pick up 4m in long term incentive shares that he was awarded in 2009.

500 job losses in investment divison

RBS said the strategy was designed to help move toward the ring fencing requirements outlined by the Independent Commission on Banking and adopted by the Government last year.

to make bankers more accountable for their actions.

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RBS said it aims to reduce its balance sheet from Nike Hoodie Basketball 420bn at the end of June to around 300bn over the three year period.

If you feel we have made an error in a report, or have fallen below our usual high standards, please write in the first instance to: Rob Irvine, editor, Manchester Evening News, Mitchell Henry House, Hollinwood Avenue, Chadderton, Oldham OL9 8EP.

Hoare Govett was acquired in RBS's disastrous 48bn joint bid for Dutch bank ABN Amro in 2007.

The recommendation called for banks to ring fence their retail, or high street, operations from their riskier investment banking divisions.

GBM has suffered recently as market turbulence, driven by global recession fears, hit income however, the division still recorded income of 1.1bn in the three months to September 30.

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