London job losses expected at Citigroup and Goldman Sachs
by Gill Montia
Story link: London job losses expected at Citigroup and Goldman Sachs
Citigroup and Goldman Sachs have embarked on further rounds of job cuts.
Both banks are reducing headcounts globally and jobs in the City are under threat with staff cuts of up to 10% expected in some areas of the business.
In the case of Goldman Sachs, the latest job losses will be in addition to the 5% […]
Credit Suisse cuts 75 London jobs
by Gill Montia
Story link: Credit Suisse cuts 75 London jobs
Credit Suisse, Switzerland’s second largest bank, is reducing staff numbers in its UK investment banking division by 75.
The bank, which has its UK operations headquartered in London’s Canary Wharf, is blaming market conditions for its latest round of job cuts, having already reduced the headcount in its investment banking unit by around 1,000 this year.
The […]
Olivant increases stake in UBS
by Gill Montia
Story link: Olivant increases stake in UBS
Swiss investment bank, UBS, is receiving renewed interest from Olivant, its activist investor headed by former chief executive of the bank, Luqman Arnold.
This week Olivant raised its stake in the group to 2.5% (up from 1.1% earlier this year) and has continued its calls for a review of the bank’s strategy.
UBS has suffered greater losses […]
Lehman Brothers ousts chief financial and operating officers
by Gill Montia
Story link: Lehman Brothers ousts chief financial and operating officers
Wall Street investment bank, Lehman Brothers, has replaced its chief financial officer and chief operating officer.
Erin Callan and Joseph Gregory, both long-term employees with the bank, left their posts without notice.
Ian Lowitt, the bank’s chief administration officer, has replaced Ms Callan and Bart McDade, head of equities, has taken the role of chief operating officer. […]
UBS warns of future property market losses
by Gill Montia
Story link: UBS warns of future property market losses
UBS, the Swiss investment bank that has been hard hit by the US sub-prime mortgage crisis, has warned that it could be facing further losses in property markets outside the US.
So far the bank has written down around $38 billion in relation to the US crisis and is now in the process of raising […]
London jobs cut as UBS posts £5.6bn loss
by Gill Montia
Story link: London jobs cut as UBS posts £5.6bn loss
Swiss bank, UBS, is cutting its global workforce by 5,500; approximately 2,600 redundancies are expected at its London and New York investment banking units.
Around 9,000 staff are employed at the bank’s investment division in London and up to 900 jobs are believed to be at risk of compulsory redundancy.
UBS has been one of the biggest […]
Morgan Stanley sued over James Brown’s estate
by Gill Montia
Story link: Morgan Stanley sued over James Brown’s estate
Wall Street investment bank, Morgan Stanley, is facing a law suit over the management of the estate of soul artist, James Brown.
The trustees of Mr Brown’s estate are accusing the bank of being complicit in allowing David Cannon, a previous manager of Mr Brown’s finances, to steal up to $12 million over the ten years […]
UBS cuts investment banking business
by Gill Montia
Story link: UBS cuts investment banking business
UBS, the Swiss investment bank, is undertaking a radical review following losses totalling around $37.4 billion so far, in connection with the US sub-prime mortgage crisis.
Chief executive, Marcel Rohner, has told a meeting of investors that the group’s investment banking business will be cut back and no longer subsidised by its wealth management activities. Mr […]
$5.1bn Loss Reported By Citigroup
by Elisha Sanders
Story link: $5.1bn Loss Reported By Citigroup
US investment banking heavy-weight, Citigroup, has just announced that the first quarter saw the bank lose another $5.1 billion after they were forced to write down close to $16 billion.
This is the second subsequent loss for the company, who have announced that, as a part of their effort to dramatically reduce their cost base by […]
Citi’s $5.1bn loss emphasizes depth of crisis
by Dave Nixon
Story link: Citi’s $5.1bn loss emphasizes depth of crisis
Citigroup underlined the predicament of financial firms squeezed by the credit crunch and the slowing US economy on Friday by announcing a $5.1bn quarterly loss, nearly $16bn in writedowns and 9,000 job cuts.
However its shares rallied in New York, rising 4.5 per cent to end Friday’s session at $25.11, in the midst of investors’ hopes […]
Financial services braced for job losses
by Dave Nixon
Story link: Financial services braced for job losses
Up until now most London banks have trimmed only those jobs directly affected by the US housing crisis, their structured credit trading desks. Credit Suisse dropped the headcount in its securities unit by about 150 in the UK this year, while Deutsche Bank said about 120 UK jobs would go from its global markets division. […]
Call for alteration to investment bank rules
by Dave Nixon
Story link: Call for alteration to investment bank rules
Regulators should in future compel investment banks to finance themselves with longer-term debt, a requirement that would direct them to decrease their overall leverage, Don Kohn, Federal Reserve vice-chairman, said on Thursday.
The number two official at the US central bank said this would be expensive for shareholders but would make the financial system more secure […]
Investment banks eye CDS clearing house
by Dave Nixon
Story link: Investment banks eye CDS clearing house
Deutsche Bank and other investment banks are working on strategy to develop a clearing house for the credit derivatives markets in an attempt to calm growing regulatory and investor fears about “counterparty risk”.
Specifically, the banks are trying to develop a format that would only allow institutions with sturdy capital bases and credible trading histories to […]
Citigroup’s Pandit declares major cost cuts
by Dave Nixon
Story link: Citigroup’s Pandit declares major cost cuts
Vikram Pandit, Citigroup’s chief executive, has vowed to cut the under pressure financial group’s cost base by up to 20 per cent, deepening worries that Wall Street and the City of London are about to be hit by tens of thousands of additional job losses.
Mr Pandit, who took over Citi in December, specified cuts […]
Citigroup writes down $15.1bn
by Gill Montia
Story link: Citigroup writes down $15.1bn
Citigroup has reported a net loss of $5.1 billion for the first quarter of 2008, after writing down $15.1 billion (of which $6 billion related to sub-prime exposures).
The bank’s losses from the credit crunch now amount to around $33 billion.
The results were worse than expected, with analysts having predicted a loss of $4.75 billion for […]
City job losses mount
by Gill Montia
Story link: City job losses mount
Earlier this week, investment bank JP Morgan predicted that the credit crisis could result in 40,000 job losses in London’s financial services sector, during 2008 and 2009.
Yesterday Merrill Lynch announced a 4,000 headcount reduction worldwide, giving rise to estimates that 400 jobs could go at the brokerage’s offices in the capital.
Citigroup is expected to writedown […]
4,000 jobs at risk as Merrill Lynch writes down $6bn
by Gill Montia
Story link: 4,000 jobs at risk as Merrill Lynch writes down $6bn
Merrill Lynch, the New York-based stock broker, has recorded a loss of $1.96 billion for the first quarter of 2008, compared with a net profit of $2.16 billion in the first three months of 2007.
The firm has added $6 billion to the $24 billion already written down since the onset of the sub-prime mortgage crisis, […]
Merrill to draw on capital for investment abroad
by Dave Nixon
Story link: Merrill to draw on capital for investment abroad
Merrill Lynch on Tuesday said it would use its augmented capital to create investments outside the US and to take benefit of the credit turmoil on home soil.
The US bank was one of the hardest hit by the US subprime loan disaster and has raised $12.8bn in new capital from a wide range of international […]
Citi in $12bn loan sale to private equity
by Dave Nixon
Story link: Citi in $12bn loan sale to private equity
Citigroup is approaching a transaction to sell $12bn in leveraged loans at a reduction to a group of leading private equity firms, marking another stride in new chief executive Vikram Pandit’s efforts to reduce in size the under pressure bank’s balance sheet.
Although details of the deal were still being formulated, people familiar with the matter […]
Back off from the US, Deutsche urged
by Dave Nixon
Story link: Back off from the US, Deutsche urged
Deutsche Bank faces calls to spin off its investment banking actions within two years and pull back from the US, under proposals proposed by activist shareholders at its forthcoming annual meeting.
The demands come from Ekkehard Wenger, a university professor and a well-known supporter of change at many of Germany’s biggest companies for two decades, and […]
