A lagging recovery from the financial crisis, numerous debt crises in Europe and the future of regulation mean banks are tightening their belts and handing out pink slips, DealBook reports.
Goldman reportedly plans to slash 10% of non-compensation expenses over the next year, as well as cut headcount, though the numbers have not yet been revealed. BofA is expected to announce layoffs in its securities unit, while Credit Suisse is downsizing its investment bank division and Morgan Stanley last week announced plans to get rid of at least 300 of its weakest brokers.
Cuts usually come later in the year. Regulation is changing this, however. "Wall Street typically pays out roughly half of its revenue in compensation, and firms often wait until late summer to cull staff when they have a better sense of revenue for the year. The newest cuts are expected to come earlier this year because of recent changes in the way employees are paid," the article explains.
As hundreds of MBA jobs in finance were lost in the crisis, more biz-school grads are seeking nontraditional opportunities with companies like Apple and Amazon. [Bloomberg]
Barclay's CEO Bob Diamond aims to increase the revenue by 20% within two years. [Financial Times]
Nomura's CEO promises profits within 18 months. [Bloomberg]
Nasdaq OMX is seeking a minority stake in LCH.Clearnet, the world's largest swap clearing house. [BusinessWeek]
UBS is slowing its commodities hiring expansion after a decade- long bull market drove up pay and created a scarcity of talent. [Bloomberg]
Venezuelan billionaire Gustavo Cisneros is setting up joint ventures with Chinese banks to carry out investment in Latin American commodities industries. [BusinessWeek]
Wells Fargo is exiting the reverse mortgages business on the possibility that property values will decline further. [BusinessWeek]
Wells Fargo rolls out a private-banking blitz in New York City. [Investment News]
Hedge fund Paulson & Co., has suffered sizable losses in recent weeks. [WSJ]
Private equity jumps into Africa. [WSJ]
Nathaniel Rothschild plans to make a large oil and gas takeover through his latest investment venture, Vallares, which had a successful IPO in London last week. [DealBook]
William Ackman, head of Pershing Square Capital Management, is considering raising $3 billion for a new portfolio through an IPO. [NY Times]