Royal Bank of Canada may invest as much as $1 billion in a hedge fund spun off from its proprietary trading business, Bloomberg News reported on Friday. RBC, Canada's largest bank by market capitalization, has been considering options for the proprietary trading unit -- in which the bank invests with its own funds -- as it works to comply with the Volcker rule, a new U.S. regulation meant to prevent banks from taking on too much risk.The fund will open by year-end and will be called Taursa Capital Partners, Bloomberg said, citing two people with knowledge of the matter. It said RBC would invest in the fund without retaining an ownership stake.RBC spokesman Kevin Foster would not comment on whether the bank planned to spin out the unit. "We are actively working to restructure our proprietary trading business to comply with the Volcker rule," he said.The bank reported stronger-than-expected second-quarter results last week, driving its shares to an all-time high. The stock slipped 12 Canadian cents to C$74.64 in Toronto on Friday.
Royal Bank of Canada is a Canada-based banking company. Shares of RY fell by 0.26% or $-0.18/share to $68.82. In the past year, the shares have traded as low as $55.49 and as high as $70.01. On average, 369914 shares of RY exchange hands on a given day and today's volume is recorded at 498340.
Royal Bank of Canada is a Canada-based banking company. Shares of RY fell by 0.16% or $-0.12/share to $74.64. In the past year, the shares have traded as low as $58.55 and as high as $75.93. On average, 1711130 shares of RY.TO exchange hands on a given day and today's volume is recorded at 1784698.
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