Tuesday's Headlines: Wall Street Banks Mull More Lay-Offs
Wall Street banks are under pressure to cut more jobs as trading revenue falls, Reuters reports. At Deutsche Bank, for example, trading volumes have fallen 20-40 percent this quarter, with similar declines seen across the investment banking industry.
"If the trading business hasn't rebounded by September, Wall Street's elevators will be full of former employees with cardboard boxes heading down and out for good," the article says.
However, Wall Street chiefs are not certain the layoffs are necessary just yet, especially if the revenue drop turns out to be temporary. Investment banks have been known to ax staff prematurely. Morgan Stanley cut its fixed income unit following the 2008 crash, leaving it understaffed when the bailout recovery came. Merrill Lynch has been in a similar position.
"Nobody wants to slash ranks right before a turnaround, so the knives might not come out for a few months," the article adds.
Other headlines:
Moelis & Company hires five senior directors to help win new clients.
Latest capital requirement rules likely to hurt big banks, help regionals.
[Reuters]
Bank of Montreal's capital markets unit hiring investment bankers to focus on merger advisory.
[Reuters]
Middle East women find it easier to start financial firms than compete in male-dominated companies. [DealBook]
Bankers complacent on risk, liquidity, online banking, McKinsey study finds.
[Forbes]
Accenture to join S&P 500 index following Marshall & Illsley acquisition.
Former Citigroup vice president charged with embezzling $19 million in "the ultimate inside job."
Bank of New York Mellon to move 250 jobs from Rhode Island to Massachusetts plans to add another 150 jobs. [BizJournals]
Global IPO filings at highest number since 2007, just as Greece crisis and China inflation roil markets. [Bloomberg]
China's Sunwah International seeks to acquire two funds from British hedge fund firm RAB capital. [DealBook]
