The Royal Bank of Scotland (NYSE:RBS) is considering an overhaul of its investment-banking arm that looks likely to result in thousands of job losses at the state-owned bank.  The state has an 83% stake. The move comes as the Vickers report, which recommends “ring-fencing” lenders investment banking activities, is expected to get a boost today.

Bank of Ireland (NYSE:IRE) agrees to sell U.K.-based lender Burdale to Wells Fargo (NYSE:WFC) for around €690M ($899M). This brings BOI closer to its target of selling €10B in assets under an EU-IMF bailout. The latest deal takes BOI to €8.6B.

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JPMorgan Chase (NYSE:JPM) is in the top category under Basel’s capital rules, according to preliminary estimates, which means it would need to hold 2.5% of extra capital on top of the 7% base all institutions would be required to hold. Big banks opened lower after the Wall Street Journal reported the federal government is expected to accept Basel rules requiring banks to hold more capital. Citigroup (NYSE:C) also could land in the top capital bracket.

HSBC (NYSE:HBC) has a vast overseas balance sheet, which begs the question, where will it fall, given that the loss-absorbing capacity of banks will be at least 17% of equity capital? This will apply to both HSBC’s U.K. and non-U.K. operations, “except where they can demonstrate that they do not pose a threat to the U.K. taxpayer.”

Pennsylvania Real Estate Investment Trust (NYSE:PEI) files a $1B shelf registration with the SEC (S-3). The shelf registration allows the firm to sell a mix of common stock, preferred shares, warrants, and debt securities.

Don’t Miss: Royal Bank of Scotland Prepares for Massive Layoffs.

RBS (NYSE:RBS) makes further progress in its aim of withdrawing from riskier property loans, forging a deal to sell a 1.36 billion pounds ($2.1B) portfolio, Reuters reports. The loans will be put into a fund in which RBS will hold 75% and the remainder held by Blackstone. Blackstone will manage the fund and RBS will sell down its stake by 2013.

Jeffries (NYSE:JEF) shrank its balance sheet by 25%. JEF fourth fiscal quarter will see an EPS of $0.17 beats by $0.03. Revenue will hit the $554 million mark, but will miss year-over-year by $8 million. The firm reports tangible common book value of $14.40/share and declares a quarterly dividend of $0.075. “Competitive and legislative forces continue to evolve in ways that favor our client-focused model.”

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AllianceBernstein (NYSE:AB) gets a boost after announcing some organizational changes as part of its effort to streamline management and improve performance. Assuming the role of Chief Operating Officer will be James Gingrich, the leader of its sell-side research subsidiary, while Robert M. Keith, co-manager of institutional and retail distribution, will become head of client service, sales and marketing.

Prudential (NYSE:PRU) Chairman Harvey McGrath will step down in 2012 once a successor has been found. McGrath’s departure may have been inevitable after he received blame for much of the U.K. insurer’s botched attempt to buy Asian rival AIA from AIG for $35.5 billion.

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HSBC (NYSE:HBC) is pulling out of private banking in Japan as it streamlines operations, and is selling the unit to Credit Suisse (NYSE:CS). The amount is undisclosed. The value of the gross assets included in the sale was around $2.7 billion as of the end of October.

Delphi Financial Group (NYSE:DFG) to be acquired by Tokio Marine Holdings (TKOMY.PK) for $43.875 per Class A share and $52.875 per Class B share in cash, or a total of $2.7 billion including a special dividend. The deal is part of a larger trend of Japanese firms. Firms are capitalizing on the strong yen to go shopping abroad, hoping to offset weak growth at home.

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Bank of America (NYSE:BAC) is close to settling a Department of Justice probe into whether Countrywide violated fair-lending practices, Bloomberg reports. The speculation comes as the White House increases scrutiny on banks. To prevent redlining, scrutiny has been increased – excluding borrowers in low-income or minority neighborhoods – and pricing discrimination.

Fortress (NYSE:FIG) CEO Daniel Mudd is taking a leave of absence. He is being sued by the Securities Exchange Commission for actions taken while he was the Fannie Mae boss. Randal Nardone, a co-founder of the firm, will serve as interim CEO, effective immediately.

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Deutsche Bank (NYSE:DB) is being sued by two hedge funds for dragging its feet on a $1billion deal to buy their claims for Madoff-related losses. Prompting the firms to action were recent court decisions limiting the ability of trustee Irving Picard to further recover money.

Barclays (NYSE:BCS) according to Dow Jones, plans to reshuffle its metals trading team after taking huge losses on bets that went south. The losses – estimated as high as $500 million – reportedly won’t impact EPS and will be represented as a “one-time item.”

Don’t Miss: U.S. Mortgage Rates Drop to New Record Low.

Lloyds’ (NYSE:LYG) is P-E firm Lone Star gets itself a pre-Christmas bargain. P-E is taking advantage of a bad property environment to buy the Lloyd’s Project Royal portfolio of debt. The loans are worth more than 900 million pounds ($1.4 billion) but Lone Star reportedly gets a discount of up to 40%.

Deutsche Boerse’s (DBOEY.PK) acquisition of NYSE (NYSE:NYX) is stuck on some level in the European Union, although the Department of Justice approves the deal on the condition the exchanges agree to the sale of Deutsche’s 35% stake in Direct Edge Holdings, and certain restrictions.

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BNY Mellon (NYSE:BK) agrees to pay $1.3 million. The firm is settling an auction-rate securities case that was being investigated by authorities in Texas, New York, and Florida.

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