A group of dealmakers at Royal Bank of Scotland
The newspaper cited people close to the plans as saying every effort will be made to sell the business as a Plan A, but conceded that there may be few potential buyers for an advisory team.
Any buyout could involve spinning off a unit with anywhere between 25 and 125 staff, according to bank insiders cited in the article.
The entity would be set up as a pan-European boutique, with offices in London, Paris, Frankfurt and Amsterdam, according to the article.
The operation, which would be essentially self-financing with a limited investment requirement, would still need a degree of financial backing to meet regulatory capital needs.
(Writing by Stephen Mangan; Editing by Dale Hudson)