Lunchtime Links: Don't panic - banks are only trimming 3% of their staff

28 September 2010

2 minute read

Lunchtime Links: Don't panic - banks are only trimming 3% of their staff

It won't be much consolation if you're losing your job, but voices of reason are pointing out that no bank has yet gone beyond the psychologically significant 5% staff-cutting-barrier.

RBS's 500 redundancies this morning amount to only 3% of its Global Banking and Markets Headcount. Similarly, BofA Merrill is removing a mere 3% around the edges.

Banks regularly weed out underperformers before bonus time and a little 3% trimming is no big deal. If anything, it's less than in a normal year - so far.

Citi shows bank chequebooks are open. (Fortune)

What Stephen Trauber brings to Citigroup. (DealBook)

Commerzbank says earnings are rising in its investment bank and that being an attractive employer isn't all about pay. (Bloomberg)

London-based hedge fund has shut Asia funds, pondering what to do with its people in Singapore. (Bloomberg)

The German government is watching bonus payments carefully. (Bloomberg)

JPMorgan Chase is moving its proprietary trading unit out of its investment bank and into its asset management unit. (DealBook)

UK government advised to split up banks. (Guardian)

Founder of Winton Capital earned 54m last year...(Telegraph)

...Despite profits at Winton falling 79%. (Financial News)

Top women in banking 2010. (Financial News)

'Wall Street: Money Never Sleeps' does not show anyone making a pitchbook. (DealBook)

Bankers and the lure of death races. (The Times)

AUTHOReFinancialCareers UK

Insider Comment

bi
billyBB
28 September 2010
oh dear.... its so sad when investment bankers have to resort to petty-minded name calling and self advertisement in order to feel better about themselves...
As for me, unlike these 2 petty minded losers, I am a massive success. and the owner of a small provincial town
Reply
Al
AliDesai
28 September 2010
@Master FoHF - in my experience of living in a small provincial town those who resort to using their fists (verbally or physically or figuratively) are the ones who are losing the argument. This can be seen from our last encounter where your arguments for FoHF were shown to be built on foundations of straw.
As for the relative success or otherwise of myself versus my acquaintances I have to say that we are all one big happy family in my small provincial town, except for Charlie who is holding a sheep in reserve for you.
Reply
Ma
Master FoHF
28 September 2010
Oh my, you really are very sad.
And still miffed at getting put down during our last arguement.
I typed the msg very quickly as i'm at work and have other priorities, if i wanted all teh grammer/spelling etc to be correct I would take more care. Do you actually work Ali? are you a recruitment consultant?
I suspect that you're an under-achiever, but like to pretend you're not, hence acting like jonny big b*ocks on anonymous websites. HAve all of ur friends/acquantances been more successful in their lives?
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Al
AliDesai
28 September 2010
@Master FoHF - I see your spelling and grammar have not improved. Its "jeopardise" not "jepordize" and "retirement" not "returement". I am sure your employer would not mind if you left and came to live in a small provincial town and kept Charlie company.
Reply
Ma
Master FoHF
28 September 2010
Well i guess that yes it is... but its not a clear cut issue.
1) we're in the most competitive industry in the world, if you dont pay the right people proper bonuses they'll work for someone else and you'll jepordize next years revenue
2) some people performed v well, but bank/dept didnt make profit for other reasons - they'll leave if they dont get paid
3) Bankers tend to work longer hours and sacrifice more then other industries for that elusive "returement" bonus, if you lose that carrot, people like me will not drop the holiday we've been planning for 6 months for a chance to win that deal...
Reply