Monday's Headlines: Bank job cuts highest since 2008 on revenue, regulation
The world's largest banks are cutting jobs more quickly than they have since the height of the financial crisis in 2008, Bloomberg reports. Weaker revenues, tighter regulation and corporate restructuring are to blame.
The world's 50 biggest banks, such as Bank of America and Credit Suisse have announced 60,000 lay-offs since the beginning of the year, Bloomberg writes. If cuts continue at the same rate, banks will have shed 101,000 jobs by the end of the year, compared with 192,000 cuts in 2008.
"Persistent low interest rates, stagnant loan growth and new rules for debit cards will crimp U.S. bank earnings this year," Bloomberg writes. "Global regulators, seeking to avoid a repeat of the financial crisis and blunt the impact of potential European sovereign debt defaults, are pushing banks to hold more capital." In this challenging climate, banks are paring costs by cutting jobs and restructuring their global operations to focus on rapidly growing economies.
AIG sues Bank of America over alleged $10 billion "massive" mortgage fraud. [Reuters]
Ex- A.G. Edwards executives leave Wells Fargo after reshuffle. [Investment News]
No criminal charges for Washington Mutual due to bank failure, US says. [Bloomberg]
US Justice Department investigating Citigroup mortgage business. [Reuters]
AIG financial products unit, central to financial crisis, shuts down with profit. [DealBook]
Citigroup hires Bassam Salem to run private banking in Asia Pacific. [Wall Street Journal]
Wells Fargo reaches $590 million deal with Wachovia over investment claims. [Biz Journals]
Bank of America's ReconTrust sued by Washington State over foreclosures. [BusinessWeek]
New novel exposes bizarre banking world, sheds light on crisis. [New York Times]
Regulators subpoena high-frequency trading firms amid widening probe. [Wall Street Journal]
CIT Group promotes Nelson Chai to president; John Thain Favorite. [[DealBook]