Jefferies isn’t playing around. The struggling investment bank sent a memo telling employees they will receive a discretionary cash bonus for 2011 – but the firm will insist it be repaid if workers leave for a competitor within the following year, Fox Business Network reported. Restricted cash paid in lieu of restricted stock is subject to a 20-month clawback policy.
CEO Richard Handler wrote in the memo: “We believe this approach assures that our year-end compensation pool will only accrue to the benefit of those who are committed to the long-term success of our firm.”
Jefferies allocated $1.17 billion – or 59 percent of net revenue -- for employee compensation in the first nine months of its fiscal year, amounting to about 59 percent of net revenue.
France’s Credit Agricole will cut 2,350 jobs, mostly in investment banking. [Reuters]
Deutsche’s head of corporate finance investment banking in Japan resigned as the bank cut 20 jobs in Tokyo. [Bloomberg]
The JPMorgan Chase owned hedge fund Highbridge Capital laid off three senior executives, including two portfolio managers. [AR Magazine]
Morgan Stanley returned $700 Million to investors of its flagship global real estate fund in an effort to keep it open until June 2013. [WSJ]
The struggling Goldman has lost 37 partners this year, adding nine from outside. [Bloomberg]
Goldman’s asset management division will buy the mutual fund division of Dividend Growth Advisors. [On Wall Street]
Goldman is sitting out on the Chinese IPO market. [Businessweek]
Analysts worry Germany’s Commerzbank will not rise to pressure to raise capital. [DealBook]
Morgan Stanley’s settlement with MBIA potentially improved its position for 2012. [Reuters]