Monday's Headlines: HSBC to cut 30,000 jobs by 2013
HSBC plans to lay off 30,000 employees, or about 10% of its workforce, many in the U.S., in an effort to boost its profits, The New York Times and other media reported.
Europe's largest bank also announced plans to sell 195 branches in New York State to First Niagara Financial Group for $1 billion. The news comes as the bank reveals details of a previously announced strategy to cut costs by $2.5-$3.5 billion in the next two years.
"The job cuts would mainly come from mature markets, including Europe and the United States," the New York Times writes. "HSBC has closed its retail banking operation in Russia and Poland, shut 66 bank branches in Mexico and sold insurance businesses in Britain, Bermuda and Mexico." However, the bank expects to continue hiring in Asia and Brazil.
UBS no longer interested in office space at World Trade Center in Manhattan. [Bloomberg]
Lansdowne hedge fund sells its Goldman Sachs stake, signaling concerns. [MarketWatch]
J.P. Morgan gets out of XSPAND tax lien business bought with Bear Stearns. [Crain's New York]
Kuwait loan demand slows on delayed government deals, local loan defaults. [BusinessWeek]
Merrill Lynch global equities co-chief Stewart leaves for UBS. [Wall Street Journal]
SEC interns not on Wall Street, but their work is hard and rewarding too. [DealBook]
Lehman appeals order upholding quick sale of US business to Barclays. [Reuters]
Some US companies are hiking salaries even as others announce lay offs. [Wall Street Journal]
Warburg Pincus buys majority share in The Mutual Fund Store, allowing growth. [BizJournals]
Pay for corporate board directors climbs further to median $200,000 per year. [Dow Jones]
Goldman's Gary Cohn may be hurt by abrasive character, strong ties to Blankfein. [BusinessWeek]
Janus Capital Group launches new Asia equity fund, led by Hiroshi Yoh. [BizJournals]