Time for another "Layoffs on Wall Street" story. Analysts estimate that the big banks will employ between 10 percent and 15 percent fewer people in early 2013 than at the start of 2012, reports CNN Money. Wall Street firms cut 75,000 jobs in 2011. As for the reasons, CNN writes:
With interest rates near all-time lows and growth slowing in the global economy, banks are having trouble finding new sources of revenue. That means the banks will probably once again look to pink slips to preserve their profits. “The problem is that as fast as these banks cut jobs, the revenue goes down even further,” said Christopher Wheeler, a bank analyst at the research firm Mediobanco.
Goldman reportedly will be forced to slash headcount further despite first-quarter comps reductions, joining Wall Street banks that have informed senior staffers that their jobs will be no more by year’s end.
This trend of course, only adds insult to injury, as nearly every financial institution has reduced its workforce in the past couple of years. JPMorgan Chase is the exception, having grown to 260,000 employees from 195,000 at the end of 2008.
Lloyds will sell its private equity assets for $1.6 billion. [NY Times]
Carlyle will buy Getty Images from Hellman & Friedman for $3.3 billion. [DealBook]
Fund Managers unload banks. [WSJ]
Japan narrows the gap with China for top holder of treasuries. [WSJ]
Spanish banks borrow a record sum from ECB. [WSJ]
Fannie Mae and Freddie Mac are clamping down on banks. [Reuters]
Tiger Asia, a spinoff of Julian Robertson's Tiger Management that is facing insider trading charges in Hong Kong, will return investor money. [NY Times]