Bad, but inevitable news: redundancies announced so far this year have reflected only the deterioration in revenues in the first half; given the ongoing revenue collapse in the third quarter, banks will need to announce a lot more cuts in the near future.
The European Union's new 9% core tier one capital ratio is increasing the pressure. Bloomberg reports that JPMorgan analyst Kian Abouhossein has looked at the $415bn of risk weighted assets that UBS, Deutsche, BarCap and Credit Suisse plan to divest imminently and reached an inevitable conclusion: they will need to cut more jobs.
Deutsche has already committed to cutting 500 people from its securities unit; UBS has committed to cut 1,575 investment bankers and BarCap and Credit Suisse are already cutting 3,000 and 2,000 people respectively.
In the face of such trimming, the hiring that's happening is negligible. RBC is, however, making a very small effort: it just hired Johnny Vo, formerly of Goldman Sachs, and James Eves, formerly of UBS, for is FIG ECM team. FSA records suggest Vo may have left Goldman as long ago as 2008. It's not clear when Eves left UBS.
Deutsche Bank, UBS and Credit Suisse, along with Societe Generale and Dexia, are preparing to wield the axe in the US in a way not witnessed since the depths of the financial crisis in 2008. (NY Post)
After adding 9,900 jobs between January 2010 and this April, the New York financial services industry shed 4,100 jobs through August and could lose nearly 10,000 more by the end of 2012. (Businessweek)
"This is not a blip," said one senior banker. "This is going to be a much, much less profitable business going forward." (Financial Times)
Big redundancies will probably be announced at F&C on Tuesday. (Telegraph)
ABM is rebuilding itself as a force in global commodities trading and has said it might buy assets sold by other European banks trying to raise capital. (Financial Times)
BNP wants to hire 10 people for its Japanese equities business. (Bloomberg)
There are four jobs now on offer at HM Treasury. (HM Treasury)
Oriel Securities has hired 36 people this year and wants to hire some more. (Financial News)
City PR firm Brunswick made 10k a day advising on the takeover of engineering group Charter. (Sunday Times)
Banks and disaster myopia. (Alea)
Terry Smith: In my view Big Bang was a colossal mistake. (TerrySmith.com)