Wednesday's Headlines: Citi to cut 3,000 jobs
The cuts on Wall Street continue. Citigroup is making plans to slash about 3,000 jobs, or 1 percent of its global work force, with about a third coming from the banking and securities unit, according to DealBook. The article quoted anonymous sources and stated that while plans are not final, layoffs could take place throughout 2012.
Meanwhile, the Wall Street Journal reported that the bank plans to eliminate 900 jobs in its securities and banking division, or about 5 percent of the unit's worldwide staff.
Citi's job cuts are mild compared with its competitors, though of course the entire industry is on shaky ground. Last month, the New York state comptroller estimated that about 10,000 securities industry workers could lose their jobs through 2012, bringing the total to 32,000 since January 2008.
UBS plans to shrink its investment banking unit. [Bloomberg]
Federal prosecutions for financial institution fraud have tumbled over the last decade. [NY Times]
Wall street bonus structures pit shareholders against bankers. [WSJ]
Lawmakers moved to slash pay for employees at Fannie Mae and Freddie Mac. [WSJ]
Private equity deals in Canada were down 40 percent in Q3. [Reuters]
BNP Paribas said that it plans to cut almost 1,400 jobs, or close to 7 percent of staff, at its corporate and investment bank. [WSJ]
Credit Suisse moves to boost its private bank by folding its Clariden Leu unit into the rest of the bank, eliminating brands that have been around for more than 250 years. [WSJ]
Wessex Asset Management in the U.K. is closing three hedge funds. [Reuters]
Finra fines JPMorgan Chase for selling risky investments. [Investment News]
Rasmala Investment Bank, based in Dubai, is gauging potential buyers' interest. [Reuters]