Thursday’s Headlines: Cuts, Cuts and More Cuts
Yowsers. Here we go … The Wall Street Journal gives us a roundup of impending financial job cuts.
Citi will cut an additional 350 securities and banking positions, and Goldman plans to replace older workers with younger cheaper ones, while Bank of America announced plans to cut costs overall and is creating a pool of younger workers to be routed to temporary roles throughout the bank. It is expected to reduce headcount in the thousands.
For the year ended June 30th, the six largest U.S. banks had slashed more than 18,000 jobs, and things are even tougher at European banks. Credit Suisse announced plans Wednesday to raise its cost-cutting goals by 50 percent, which will focus on private and investment banking. Deutsche, according to a Reuters story in The New York Times, “aims to cut almost a tenth of its investment banking staff ... The cull of around 1,000 jobs is an about-turn for Germany's flagship lender which in April said it saw no need for layoffs at its investment bank, one of the main profit drivers for the whole company.”
These are in addition to the 500 corporate banking and securities positions the bank announced cutting in October.
Goldman will grow its metals trading group. [Reuters]
Morgan Stanley hires more brokers. [Reuters]
Morgan Stanley swung to a Q2 profit, but its revenue fell. [DealBook]
KKR is rolling out two funds for individual investors. [WSJ]
Lloyds will sell its 632 branches to the Co-Operative Group. [Reuters]
Start-up hedge funds raised 50 percent more this year. [Reuters]
PNC and U.S. Bancorp grew lending on acquisitions, market-share gains and refinancing. [WSJ]
Wealthy Muslims have few private banking options. [NY Times]
European hedge fund Brevan Howard opened a U.S. investment firm with $300 million. [Bloomberg]
Ten docial media timesavers for busy advisors. [Investment News]