Top Firm Could Cut 3,500 Investment Banking Jobs


Another UBS ?

Reuters reports that Barclays could axe as many as 3,500 investment bank staff and cut its advisory or equities operations in Asia as part of a broader strategic review aimed at fixing the bank's culture in the wake of the financial crisis.

The future shape and size of the investment bank is seen as the most critical part of CEO Antony Jenkins' current review.

Jenkins is not due to unveil his 'Project Transform' until February, but Project Mango, as the investment bank revamp has been named by the unit's boss Rich Ricci, is close to being wrapped up.

'Barclays is at an interesting crossroad', analysts at BernsteinResearch said in a note to clients.

'On one hand, the bank seems likely to be one of the winners as competitors exit FICC (fixed income, currencies and commodities) ... on the other hand, the unit has faced increased hostility from regulators and investors alike, especially following the Libor crisis'.

In the meantime, the news agency also reports that one-third of the 150 employees fired in Citigroup's investment bank this week were in the cash equities unit, which had been struggling with an industrywide decline in trading volumes, two people familiar with the layoffs said Friday.

Citigroup, already a major force in fixed-income trading, had been building its stock trading efforts in recent years just as volumes began to shrink. The latest round of layoffs affected about 6 percent of the 800 people who work in the cash equities unit - with most of the cuts occurring in the United States.

Finally, Reuters reports that hedge fund Kleinheinz Capital Partners, which has roughly $2bn in assets, told investors on Friday that it is shutting down.

'After over 20 years of managing hedge fund partnerships and nearly 17 years since I started this firm, I have decided to return our investors' capital', John Kleinheinz said in a letter. A copy of the letter was obtained by Reuters.

Barclays investment bank revamp could mean staff cuts

Citigroup layoffs target declining stock-trading business

Hedge fund Kleinheinz Capital to liquidate

image: © C.P.Storm

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