Bloomberg reports that Deutsche Bank CEO Josef Ackermann has said that he plans to waive his 2008 bonus, and stick the monies in the pot for more 'deserving' collegues. It's a pity he doesn't set it aside for his shareholders. Ackermann received a performance-related payout of $10.8m last year, although wasn't on track to take anywhere near that this year.
Reuters reports that Morgan Stanley CEO John Mack said in a CNBC interview Thursday that his firm would 'likely cut back in a number of businesses in light of the global financial crisis roiling banks and weighing down the economy'.
Hedge funds, of course, are not immune to the turmoil currently being seen in the financial markets. The industry employs around 150,000 people, and is thought to have already cut between 3,500 and 5,000 heads. And Bloomberg reports that the smart money says that that figure may rise to 10,000 before the year is out.
It's started already. Almost-nationalised Royal Bank of Scotland is pushing ahead with those little cost-savings. Detailed below is a copy of an e-mail sent to the bank's Global Banking & Markets staff last week.
Warren Buffett has taken the time to write an Op Ed in The New York Times. The subject is 'Buy American. I am'. Here's the piece.
UBS further materially de-risks balance sheet through transaction with Swiss National Bank. Here's the bank's press release.
Bloomberg reports that Fortis shares dropped to their lowest level for 18 years Tuesday, upon resuming trading after a six-day suspension. The stock fell 78% to 1.22 euros.
The Financial Times reports that Citi is to change the way it pays executives in its investment banking unit in order to 'encourage greater co-operation and minimise the internal battles that have hampered performance in the past'.
UK think-tank the Centre for Economics and Business Research came out earlier this week and predicted that 28,000 'City' jobs would go this year, followed by 34,000 in 2009. And now the Office of New York City Comptroller William Thompson has said that the City may see 165,000 jobs go in the next two years, including an additional 35,000 in the financial markets industry.
'Good morning. Before I begin, I want to express my appreciation of my colleagues, Secretary Paulson (US Treasury) and Chairman Bair (FDIC), for their efforts in what has been an extraordinary collaboration. As Americans well know, the challenges evident in the financial markets and in the economy are large and complex, but I believe that the steps taken today will help us to overcome them. Our strategy will continue to evolve and be refined as we adapt to new developments and the inevitable setbacks. But we will not stand down until we have achieved our goals of repairing and reforming our financial system and thereby restoring prosperity to our economy.