Global Bank Jobs at Stake Over Capital Shortfall

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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.

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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.

 

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Jobs Are No Commodity at Morgan Stanley (Bloomberg)

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.

Big Banks Spared In Madoff Case (Reuters)

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.

What Will It Take To Succeed Ben Bernanke? (Reuters)

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Hitler Video Not Enough To Axe Jefferies Trader (Business Insider)

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.

Get Hired After Getting Fired (eFinancialCareers)

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.

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List of the Day: Job Search No-Nos

If you are looking for work, avoid doing these things.

  1. Getting discouraged.
  2. Telling everyone you’re looking (if employed).
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(Source: AOL Jobs)

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