Firings, toxic assets, reduced compensation and banker jail threats - just a normal day in the markets.
The dismissals will affect staff in investment banking, operations, back office, broker dealer, fixed income and commodities and be announced in coming weeks, said one person, who requested anonymity because the plans aren’t public.
UBS, which has 220 workers in Brazil, aims to add people to its wealth-management division in the South American country, two people said.
Bloomberg also reports that Citigroup has said expenses at a unit holding some of its most toxic assets surged as legal costs mounted.
The Special Asset Pool, or SAP, had operating expenses of $572m for the three months through March, compared with $63m in last year’s first quarter, according to data released Monday by the bank.
SAP, which manages a portfolio of securities that Citigroup seeks to divest, had total expenses of $619m for all of 2011 and 2012 combined, filings show.
In the meantime, Reuters reports that investment bankers at Deutsche Bank were awarded an average $220,000 in compensation for 2012, compared with a $135,300 average for all its employees.
Total compensation fell 2.5% across the bank's 98,219 employees year-on-year. Deutsche Bank said last month it had docked pay after a hike in legal provisions prompted it to adjust its 2012 earnings downward.
Finally, Bloomberg reports that U.K. bankers involved in activities such as Libor-rigging should face the threat of prison to help restore public confidence in the finance industry, the opposition Labour Party’s business spokesman said.
It 'cannot be right' that people are jailed for fiddling state-funded welfare payments while financial workers can rig banking systems to make hundreds of thousands of pounds and escape punishment, Chuka Umunna said in a speech at Canary Wharf in London’s Docklands financial district Monday.