Top Firm Continues To Shrink Investment Bank, But Says No More Layoffs

Hands Over Eyes

Enough already.

Credit Agricole, which made deep cuts to investment bank staff and costs earlier this year, has told staff representatives it will focus on cutting costs at the unit without a new layoffs plan, sources said.

Reuters reports that staff representatives say they have met with management twice this week over future strategy.

'There will be no new layoffs plan, the focus is on finding other cost savings over the next three years', a source who attended a meeting on Thursday said.

There will be a focus on savings to back-office and IT costs, on finding cheaper real estate and on non-replacement of retirees, the source said.

In the meantime, The Wall Street Journal reports that The U.S. Office of the Comptroller of the Currency, led by Comptroller Thomas Curry, is preparing to take a formal action demanding that J.P.Morgan remedy the lapses in risk controls that allowed a small group of London-based traders to rack up losses of more than $6bn this year, according to people familiar with the company's discussions with regulators.

The OCC, the primary regulator for J.P. Morgan's deposit-taking bank, isn't expected to levy a fine, at least initially. The exact timing of the action isn't known, these people said.

Finally, The Financial Times reports that the former trader who faces criminal charges in the UBS rate-fixing probe has been linked to rates traders at Royal Bank of Scotland, JPMorgan Chas and Deutsche Bank, according to a US criminal indictment filed in the case.

A fourth firm, Citigroup, has also been publicly tied into the sprawling Libor manipulation investigation through the indictment of Tom Hayes. Prosecutors alleged that Hayes, who worked at both UBS and Citi in the last decade, tried to influence yen Libor submissions to benefit his derivatives position.

Credit Agricole pledges cost cuts without layoffs - sources

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