Citi CEO Vikram Pandit has clearly been working too hard. He sent a memo to his staff Sunday (detailed below) saying that he really believes 'we can make Citi the best company in the world'. Can working too hard make one delusional ?
Reuters reports that UBS is said to be considering the sale of its US wealth management unit Paine Webber. The move comes at a time when Swiss regulators are thought to be looking for Swiss firms, including UBS, to beef up their capital ratios. A sale of the unit, in the wake of some $37bn in asset writedowns taken by the bank in the last year, will no doubt raise a significant amount of cash.
The Guardian reports that over 10,000 financial services / markets jobs are expected to be cut in the City (London) this summer as the current market crisis deepens. The job losses will come at banks and insurance companies in the main.
It was just over 3 months ago that Merrill Lynch CEO John Thain told Spain's El Pais newspaper that his firm had tackled its biggest problems. The deteriorating credit situation, however, makes it look as if that call was made a little too early, and Thain and his executive crew now have some big decisions to make.
The Financial Times reports that analysts at Citi estimate that Barclays may have to raise an additional $17.9bn to offset further likely asset writedowns and to bring its capital ratios in line with peers.
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Goldman sneezed Thursday, and global equities caught a cold.
The recent 'outing' of Cityboy as Dresdner Kleinwort's Geraint Anderson has puzzled the City. How could a self-proclaimed hippy have risen the ranks to become a top rated analyst, made his milions and then quit to decry the system that gave him his fortune ? Was Cityboy taking the mikey when he worked in the City, or is he taking it now ?
Bloomberg reports that, according to 'three people familiar with the situation', Calyon, the investment banking arm of Credit Agricole, has taken another trading hit.
10%. That was the magic number at the start of the year. Recognising that 2008 was likely to be a difficult year, most firms were hoping to keep headcount reductions at or below 10% of the workforce. Few have succeeded in that aim.
Goldman Sachs and JPMorgan Chase are usually bitter rivals, competing for lucrative banking and trading business. But one day in April, the Wall Street titans found common ground -
How do you sell the technology company you founded for $1.8bn and five years later file for personal bankruptcy ?
Guy Hands’s Terra Firma Capital Partners has got a second chance to try its $8.3bn claim against Citigroup over the 2007 sale of EMI Group.