Another Firm Imposes Pay Cut & Plans To Reduce Heads
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The firm's IT contractors were advised by e-mail:
'With challenging market conditions, Nomura have an obligation to review all aspects of their cost base. Following an internal review and external benchmarking exercise, a decision has been made to reduce contractor spend through a combination of head-count and a 10% contractor rate reduction across Technology within Nomura. The aim of this initiative is to achieve cost saving efficiencies combined with re-aligning Nomura's position in the market'.
The Wall Street Journal reports that Citi CEO Vikram Pandit has signed off on closing the hedge fund he founded, Old Lane, and Citi will buy what's left of the firm's assets. A Citi spokesperson said: 'We are in the process of restructuring Old Lane. Its business and its people continue to be valuable to us. We are confident that we can realize that value over time'.
German newspaper Handelsblatt reports that, according to unnamed people familiar with the situation, Commerzbank and Dresdner Bank are busy looking over each other's books in preparation for possible merger talks.
Bloomberg reports that HBOS's rights issue looks like being rather less than successful, and that underwriters Dredsner Kleinwort and Morgan Stanley may be forced to buy up significant amounts of the company stock at an initial paper loss. The underwriters guaranteed the share sale at 275 pence, but the stock was trading at 258 Wednesday, leaving the firms with an estimated $491m headache.
Finally, Reuters reports that Merrill Lynch CEO John Thain said Wednesday that in the event that his firm needed to raise more capital (not that that appears on the cards at the moment), he would consider selling Merrill's stakes in Bloomberg and BlackRock. Thain said: 'It is true that there are some liquidity restrictions on BlackRock and Bloomberg, but I don't believe that that would prevent us, if we decided to, from using either of them as a means of raising capital'.
