Morning Coffee: Wall Street Job Cuts on the Decline
Firms are still cutting jobs in the financial services sector; that much is obvious. But job cuts aren’t as prevalent as they were a year ago. In fact, it’s not even close, suggesting that industry-wide purging of Wall Street talent may be close to nearing its end. Maybe.
Roughly 22,500 job cuts have been announced by the world’s 50 largest banks in 2012, according to data compiled by Bloomberg. This compares to the 106,000 that were disclosed in the final five months of 2011, after the mess that is Europe began to infiltrate the global economy.
Wall Street firms, once bloated with unsustainable headcounts, have eliminated the majority of their redundancies and appear more stable, highlighted by strong third quarter performances by several top U.S. banks.
But the impending U.S. “fiscal cliff,” set to occur in 2013 when planned tax increases and spending cuts hit the U.S. economy simultaneously, leaves open the possibility of further job cuts, and not just in financial services. Companies across all industries are waiting with bated breath to see how steep the cliff will be.
Greg Jensen, the former Bridgewater Associates intern who now runs the world’s largest hedge fund, comes in at number five on CNNMoney’s “Top 40 Under 40” List. The 38-year-old CEO ranked only behind a handful of young technology executives.
Citigroup's third quarter profit fell 88% on the back of a 33% drop in revenue, but it’s not all bad news. Excluding several onetime charges, the U.S. bank’s operating profit soundly beat Wall Street expectations with help from its improving mortgage business and rising capital markets revenue.
J.P. Morgan Chief Executive Jamie Dimon said last week that the housing market had turned the corner. Citigroup CFO John Gerspach isn’t so sure, noting that “some rather significant challenges” remain.
UBS was forced to fire roughly 550 employees, mostly in 2011, due to the actions of Kweku Adoboli, the rogue UBS trader whose unauthorized trading cost the Swiss bank $2.3 billion.
Apparently Nomura’s management changes have no end in sight. The Japanese bank is merging some of its investment banking units into a virtual cross-border M&A team. It’s a complicated as it sound.
More than 200 friends and former colleagues, including Microsoft Chairman Bill Gates and former United Nations Secretary-General Kofi Annan, have asked a U.S. district judge to go easy on Rajat Gupta, the former Goldman Sachs exec scheduled to be sentenced next week after being convicted of insider trading.
Nearly 40% of employers check a candidate’s Facebook profile before making an offer.
Buzz Around the Office
Part of the excitement of watching live television is the possibility that something terribly wrong may occur. Like a reporter getting hit in the face with a football.
List of the Day: Bad Interview Questions
Asking questions during an interview is critical. Just don’t ask these questions.
- Can I work from home?
- Do you have flexible hours?
- Do you have any restrictions on personal Internet use?