Global Bank Jobs at Stake Over Capital Shortfall
Barclays, RBS and Lloyds say they’re squeezing parts of their businesses to stem a 27.1 billion-pound capital shortfall by the end of the year. There’s no word on how many jobs may be slashed but they may have to shave off staff from underperforming units to meet regulators’ growing demands.
That’s bad news for Britain’s bleeding banks. The four biggest banks in Britain -- Lloyds, HSBC, RBS and Barclays – are expected to axe 24% of their headcounts, sinking staff to a nine-year low of 606,000, compared with a high of 795,000 in 2008, according to recent Bloomberg data. That’s 189,000 jobs around the world and now there’s likelihood of more global cuts.
Investment bankers at Barclays are likely safe, given better-than expected profits in the unit. But traders could be at risk after an independent review, commissioned by Barclays after the interest-rate scandal, found that pay for top Barclays executives and traders is much higher than at rival firms.
RBS could cut deeper into its markets business, following a plunge in markets revenue that was blamed for a 19% decline in operating profit in the core unit.
Lloyds has been selling assets to bolster capital and recently dumped a 20% stake in wealth manager St. James’s Place and may get rid of its Scottish Widows Investment Partnership unit. But that may not be enough and the bank may be forced to cut even more jobs.
Activist investor Carl C. Icahn, 77, is following his elder rival Warren Buffett, 82, into the Twittersphere. Icahn is making quick social media jabs at fellow billionaire, Michael Dell, a social media extension of his sight to take Dell’s company private in a $24.4 billion buyout deal.
You can make big money at the Big Four. Some 41,000 accounting graduates were hired by public accounting firms last year and those firms are expected to hire even more this year.
The Wall Street commodities giant reportedly plans to slash about 30 to 35 jobs in commodities, or 10% of its workforce. The past two quarters have been devastating for commodities, but the bank refused to disclose the unit’s revenue in financial reports.
A federal appeals court rejected a trustee’s bid to recover some $30 billion from J.P. Morgan and other banks he accused of aiding in the massive fraud. Irving Picard has so far recovered $9.35 billion, more than half of the $17.3 billion of the principal he claims was lost.
Fed Vice Chair Janet Yellen, former Obama and Clinton aide Lawrence Summers, Geithner and former Fed vice chairs Donald Kohn and Roger Ferguson are contenders. Yellen’s reputation as an inflation dove who has worked closely with Bernanke makes her a top pick, but what else does it take?
A Hong Kong judge says Jefferies Group wrongfully fired its former Asia head of equity trading Grant Williams over a newsletter that included a Hitler parody video. Editor’s Note: Don’t try this at home, no way it will pass a second time.
Remember you’re in good company if you’ve been let go. Take a forward looking approach to finding your next job, with confidence and pride to match your skills and search.
Buzz Around The Office
List of the Day: Job Search No-Nos
If you are looking for work, avoid doing these things.
- Getting discouraged.
- Telling everyone you’re looking (if employed).
- Underestimating the power of networking.