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More Bad News Likely Over At Top Firm

While Citi CEO Vikram Pandit put a brave face on those $18bn asset write-downs and $9.83bn fourth-quarter losses announced Tuesday, the market isn't so sure that all the bad news is yet out. The smart money says it could get a lot worse over at Citi before it gets better.

Top Firm Announces Another 650 Job Losses

The Grim Reaper

Bank of America (BofA) came out Tuesday and announced that there will be another 650 job losses over at its investment bank. And that's in addition to the 500 unit jobs that were culled back in October. Although the bank won't say where the job axe will fall, most investment banking personnel are based in Charlotte, London and New York.

Firm Boss Calls Halt To Bonus 'Civil War'

Merrill Lynch bosses are said to have been calming down the troops after tensions erupted following the announcement of bonuses last week. New firm CEO John Thain is said to have been insistent that all employees share in the pain of Merrill's subprime lending-related woes and, as a result, some staff are thought to feel that they have been stiffed on pay-outs because of the efforts of a few in fixed income last year. Thain is thought to be concerned that, at the very time he wants the troops to pull together, civil war looks like breaking out. He is believed to have told managers to sort this nonsense out - and pronto.

Top Firm Cleans House - Posts $9.83bn Loss

Unhappy Vikram Pandit

Citi came out Tuesday reporting a fourth quarter loss of $9.83bn (the biggest in its 196-year history), after subprime lending-related write downs totalling some $17.4bn in the period. An 'objective, dispassionate review' conducted by new company CEO Vikram Pandit will result in an additional four thousand five hundred job losses (17,000 were previously announced), many of which are thought likely to come over at the investment banking unit.

The Very Latest Market News

Reuters reports that Merrill Lynch has raised $6.6bn by issuing mandatory convertible stock to The Korean Investment Corporation, The Kuwaiti Investment Authority and Japan's Mizuho Financial Group.

The Very Latest On The Market Turmoil

The Financial Times reports that Citi is 'putting the finishing touches' to plans to beef up its capital base by raising up to $14bn from a variety of Chinese, Kuwaiti, public market and other investors. In the frame to pump in money is thought to be Saudi Arabia's Prince Alwaleed bin Talal, China Development Bank, The Kuwait Investment Authority and the Government of Singapore Investment Corp.

Hays Leads The Way - And It's All For Charity

Marie Curie Cancer Care Logo

A 20-strong team of Hays employees travelled to Kenya to spend twelve days in the Rift Valley, trekking across dormant volcanoes and stopping only to take part in a gruelling community project with the local Maasai people. The trip was undertaken in partnership with Marie Curie Cancer Care.