Top Firm To Cut Technology Costs By Over $1bn

The Financial Times reports that Citi is to finally get to grips with the myriad IT systems which form part of the firm's technology platform. Citi is thought to have hundreds of different systems, many inherited following acquisitions, and management now believe that a concerted effort to rationalize the IT infrastructure could result in cost-savings of over a $1bn a year.

The cost-savings are part of an overall initiative to cut costs by around $20bn by the end of the year.

And keeping with the IT theme, The Press and Journal reports that the first details have emerged as to where the recently announced 4,500 planned job cuts are to come over at Royal Bank of Scotland. And it seems that they will come in the bank's property and technology service divisions in the UK, as 700 staff have now been advised that their jobs are 'at risk'.

The Financial Times reports that Morgan Stanley has a new prime brokerage head, after the firm announced that Stu Hendel was stepping down to 'pursue outside interests'. Hendel will be replaced by Alex Ehrich, who ran UBS's prime brokerage unit for 6 years.

In the meantime, Reuters reports that staff at Merrill Lynch over in Asia are becoming worried over the state of the firm's Asia franchise, after a number of key staff have departed, and Bank of America seems to be busy worrying about other parts of its empire.

Finally, The Wall Street Journal reports that US regulator the Securities and Exchange Commission (SEC) has imposed a blanket ban on its staff trading in companies that feature in any kind of ongoing SEC investigation. The new rule has been introduced following claims that two in-house lawyers may have engaged in insider trading.