Firms Now Focus On Axing European Staff
Aside from UBS and Citi, employees working in investment banks in Europe have escaped relatively lightly when compared to their colleagues in the US (mainly New York). The smart money now says that as revenues remain under pressure (and we are now in the third-quarter, which is traditionally the slowest in revenue terms due to summer vacations), staff working in Europe are now more vulnerable to the job axe than ever before. And that applies in all areas of the business, in back, middle and front office. JPMorgan analysts are estimating that some 13% of staff working in Europe in banks will be culled this year.
Bloomberg also reports that Goldman analysts are now estimating that European banks may need to raise up to $141bn more this year to maintain their financial ratios as credit markets continue to decline. The analysts said in a report issued this week that: 'Regulatory pressures and a sharp turn in the European credit cycle are the two main causes for concern for bank investors'.
The New York Post reports that Merrill Lynch is 'inching closer to offloading its stake in ....Bloomberg' as part of a broader plan to raise $50bn to beef up its balance sheet. The firm's stake in the financial news provider is thought to be worth between $5bn - $10bn. A blind trust run for New York City Mayor (and Bloomberg founder) Michael Bloomberg looks to be in prime position to snap up Merrill's stake in the business.
Finally, The New York Times reports that Joshua Persky, the out-of-work banker who stood on the corner of 50th and Park last week handing out CVs, enjoyed the experience (apparently he is big in Korea). But he still hasn't got a job, despite hundreds of calls and e-mails from well-wishers and companies wanting to find out more about him.
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The Odds Of Avoiding The Axe - Staff Survival Probability League Table