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Barcap Cutting Jobs

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http://uk.reuters.com/article/idUKTRE6B01X920101201

Barclays Capital to cut jobs in slow market

LONDON | Wed Dec 1, 2010 3:29pm GMT

By Steve Slater / Reuters

LONDON (Reuters) - The investment bank arm of lender Barclays is set to cut hundreds of jobs after several months of slow activity across the industry could continue into next year.

"We have begun a consultation process in the UK to reduce headcount within Barclays Capital," a spokesman for BarCap said Wednesday, adding it would "continue to hire selectively across those parts of the business that are growing."

He declined to say how many jobs would be cut.

BarCap cut about 400 back office jobs in Asia, Europe and the United States in August due to the market slowdown, a source said at the time.

Rivals have also cut jobs and were expected to continue to do so as markets stay tough.

BarCap's own analysts Wednesday said industry conditions were "still soft" and predicted revenues may not bounce back next year.

"We estimate the investment banking revenue pool is down 14 percent in 2010 vs 2009, and currently predict flattish in 2011 vs 2010," the analysts said in a note, saying that is below average forecasts for a 5-10 percent rise next year.

Financial market jitters in the wake of Europe's debt crisis have hurt income at trading desks, while client caution has depressed fee income from capital raisings, hurting overall investment banking income in the past six months.

BarCap boss Bob Diamond, set to take over as group CEO next year, has been conducting a review of returns across the bank.

Barclays and other banks have raised base salaries for investment bankers after a backlash against big bonuses, but that has raised fixed costs and makes it harder to cut costs during slow periods without slashing jobs.

BarCap added about 3,000 staff in the year to the end of June, swelling the unit to about 25,500 employees.

Costs as a share of income are expected to be about 60 percent this year for the 20 biggest investment banks, below levels of near 65 percent before the financial crisis, but up from 56 percent last year, according to the research note from BarCap's analysts.

BarCap lost momentum this year after using the takeover of the U.S. operations of Lehman Brothers in 2008 as a springboard for expansion.

Its income fell to 2.8 billion pounds ($4.4 billion) in the third quarter, down 14 percent from the previous quarter, which itself was down 15 percent from the first quarter.

The third quarter was its weakest period since the Lehman deal and October was also weak, although November started better, it said.

It said fixed income, currencies, commodities, equities and prime services revenues fell last quarter, offsetting an increase in advisory income.

So sad. Found it...

http://www.youtube.com/watch?v=tVFBK9GhS5Q

Edited by AvidFan

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Barclays and other banks have raised base salaries for investment bankers after a backlash against big bonuses, but that has raised fixed costs and makes it harder to cut costs during slow periods without slashing jobs.

So in attempting to keep the gravy train on the rails some passengers get thrown off completely :lol: Surely there's a bailout due here- these are bankers after all.

This raising of base salaries to evade bonus envy does somewhat undermine the argument that their pay is results driven, as opposed to a perk of membership of the bankster club, which is closer to the truth.

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I guess nobody can borrow anything to invest! :blink:

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Bob Diamond should make a personal sacrifice. Granted, his take-home of 60 mil isn't quite in the same league as Dick Foulds bonus of $22bn for bringing the global financial system to its knees, but still - 60 mil is 60 average bankers saved. Think of it like Schindlers List - a token few who don't have to suffer...

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http://uk.reuters.com/article/idUKTRE6B01X920101201

Barclays Capital to cut jobs in slow market

LONDON | Wed Dec 1, 2010 3:29pm GMT

By Steve Slater / Reuters

So sad. Found it...

http://www.youtube.com/watch?v=tVFBK9GhS5Q

Just part of the annual City sacrifice of some of its own pour encourager les autres.

Most will be junior rankers or the usual trading desk cannon fodder who have a high burn rate.

Not likely to disturb those in the penthouse suite.

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Why the barcap hate? I thought it was only trendy to hate banks that mix savings accounts and investment arms in one company?

To me it's all one seamless miasma of graft and corruption- I hate them all.

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Bob Diamond should make a personal sacrifice. Granted, his take-home of 60 mil isn't quite in the same league as Dick Foulds bonus of $22bn for bringing the global financial system to its knees, but still - 60 mil is 60 average bankers saved. Think of it like Schindlers List - a token few who don't have to suffer...

Dick Fuld only earnt 70 million in the last 2 years of Lehman. It'll barely cover the poor man's legal costs.

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Just part of the annual City sacrifice of some of its own pour encourager les autres.

Most will be junior rankers or the usual trading desk cannon fodder who have a high burn rate.

Not likely to disturb those in the penthouse suite.

+1 Got to keep those Goldilocks turn over rates green.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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