European bankers: beware. Job cuts are a-comin’ according to news stories today. Bloomberg reports that European banks are preparing for a second wave of cuts in less than a year, with Credit Suisse and UBS facing the biggest pressure to align expenses with plummeting revenue-per-employee. Their security units are most vulnerable, as are all 12 of the largest European financial firms, which face a persistently dismal economy, fewer deals and increased security and capital requirements. One report suggests the industry could lower costs by 29 percent by reducing pay levels and reducing headcount by 10 percent to 12 percent.
But the continent’s banks are not the only ones at risk. Morgan Stanley this week will lay off 100 sales and trading staff in Europe, Middle East and Asia, according to the Financial Times, which attributes the move to a drop in trading volume, deal-making and capital market activity.
Former Barclays CEO Robert Diamond will forgo $31 million of bonuses. [NY Times]
Banks sweat in the face of regulation scrutiny of swaps. [WSJ]
Goldman and Credit Suisse lead in health care deals. [Financial News]
Accounts of futures brokerage PFGBest have been frozen by regulators on charges of insufficient funds. [CNN Money]
TPG Capital bought Chinese packager HCP Holdings for $600 million. [Reuters]
Dynasty Financial Partners nabs $4B breakaway from MSSB. [Investment News]
SAC Capital’s Steven Cohen started a reinsurance company that can invest in his hedge fund. [Businessweek]
Milwaukee-based hedge fund Stark Investments is eliminating 59 employees after announcing that it is closing three of its funds. [Hedge Fund Net]
Standard Chartered’s private equity unit bet $45.5 million on Smoothies Korea. [WSJ]