Jump to content
House Price Crash Forum
Sign in to follow this  
Nationalist

Brutal City Redundancies Only Days Or Weeks Away

Recommended Posts

http://www.bbc.co.uk/blogs/thereporters/ro...the_city_1.html

...brutal redundancies are now only days and weeks away, as it becomes commonly accepted that the turmoil in financial markets will depress certain lines of business for months if not years.

The boss of one investment bank tells me he expects a first wave of job cuts that will see individual banks reduce their headcounts between 5 and 15 per cent.

And he says he wouldn't be surprised if that was followed just a few months later by a second wave of similar or even greater magnitude.

First out the door will be many of the creators of the current crisis: the manufacturers and traders of assorted asset-backed securities that you can hardly give away right now; all those debt whiz-kids who engineered the poisonous collateralised debt and loan obligations; the banking servants of a hedge-fund world that’s shrinking fast and of a private-equity industry in cryogenic storage

Looks like the blood-letting hasn't really started yet. ;)

I wonder what sentiment will be like in the posh parts of London when the big "headcount reductions" start?

Share this post


Link to post
Share on other sites
http://www.bbc.co.uk/blogs/thereporters/ro...the_city_1.html

Looks like the blood-letting hasn't really started yet. ;)

I wonder what sentiment will be like in the posh parts of London when the big "headcount reductions" start?

From the Million Pound bonus to the Dole. A wet dream. :rolleyes:

Share this post


Link to post
Share on other sites

The hedgies aren't daft though. I bet they've got a few million quid squirrelled away. Now's the time for them to say 'yah I just rahly, rahly wanted to gedd away from the rat race and the time jusd seemed right' and start opening bars in Thailand, landscape gardening businesses, 'environmental consultancies' etc and lie low until the next boom comes along... :lol:

Share this post


Link to post
Share on other sites
The hedgies aren't daft though. I bet they've got a few million quid squirrelled away. Now's the time for them to say 'yah I just rahly, rahly wanted to gedd away from the rat race and the time jusd seemed right' and start opening bars in Thailand, landscape gardening businesses, 'environmental consultancies' etc and lie low until the next boom comes along... :lol:

:lol:

Not with property at these prices they haven't. All tied up in no lose real estate :lol:

Share this post


Link to post
Share on other sites
http://www.bbc.co.uk/blogs/thereporters/ro...the_city_1.html

Looks like the blood-letting hasn't really started yet. ;)

I wonder what sentiment will be like in the posh parts of London when the big "headcount reductions" start?

This is very poor timing. The mortgage resets begin this month with 250,000 in the pipeline from Nationwide alone before Christmas.

Quick--buy FTSE futures this news could send the market up 500 points tomorrow! :blink:

Share this post


Link to post
Share on other sites

15% isn't enough by far IMHO. Pity the poor sheeple who haven't had multi million pound bonuses to squirrel away.

Share this post


Link to post
Share on other sites

Presumably if they cull these people fast enough they won't get anything from the bonus pool... that will help make the pool bigger for the guys at the top.

Something similar happened to me during my brief and inadvisable sojourn in the city...

Share this post


Link to post
Share on other sites

The media keeps talking about "multi-million pound bonuses", but there's far more instances of someone on a £75k basic with a £75k bonus. And that's important because for the past few years lenders have been very willing to take the prospect of a £75k bonus as solid grounds to advance that individual £350k+, which they then of course use to buy a BTL.

These aren't the big movers and shakers, they're just fairly normal people who thought they were on a winner which now looks like a loser.

They're up to their ears in debt, and even if they don't lose their £75k jobs they'll certainly lose their £75k bonus. So there's no choice, they absolutely have to sell the BLT. The problem for them is that several thousand of them are about to come to that same conclusion at exactly the same time.

Share this post


Link to post
Share on other sites

and don't forget that bonus payments are rarely pure cash. A lot are part cash, part equity/option (e.g. Goldman's having to invest bonus in global alpha fund). Now, with bank shares way down, a lot of options are worthless. I know a number of people who have taken on big mortgages in the expectation that they have an option windfall coming. Not any more.

I had a look at Barclay's share register the other day, and most of the directors had options at a strike price of 630'ish. Now the price is mid 500's. Byebye millions of quid.

The media hasn't picked up on this yet, but it will have a tangible impact on the wealth effect in the City.

Share this post


Link to post
Share on other sites
15% isn't enough by far IMHO. Pity the poor sheeple who haven't had multi million pound bonuses to squirrel away.

Ummm... not everyone in the city gets a million punds bonus you know. IMO, the people who will really suffer are the average joes doing the average-paid jobs in the banks. You think the seriously high earners are going to turn on their own? Methinks not.

Share this post


Link to post
Share on other sites

ever get the feeling that everything is always just weeks / months away?

city redundancies

stock market crash

higher IR

credit crunch

house price crash - sorry, that's here cos rightmove's data has gone -ve

Share this post


Link to post
Share on other sites
ever get the feeling that everything is always just weeks / months away?

city redundancies

stock market crash

higher IR

credit crunch

house price crash - sorry, that's here cos rightmove's data has gone -ve

I can't believe Darling said the banks should be careful who they lend to. London is in for a double wammy the US sub-prime and then the EVEN BIGGER UK sub-prime crash. Canary Wharf will be used to house DHSS applicants and soup kitchens.

Who will be the first major casualty? My money (literally) is on Northern Rock aka Southern Turd.

Share this post


Link to post
Share on other sites
Who will be the first major casualty? My money (literally) is on Northern Rock aka Southern Turd.

NR is in serious trouble IMO. I cant believe anyone still holds shares in that place.......

Share this post


Link to post
Share on other sites
NR is in serious trouble IMO. I cant believe anyone still holds shares in that place.......

I hold shares in that piece of $hit. Short. I will hold until the bailiffs knock at their door.

Share this post


Link to post
Share on other sites
http://www.bbc.co.uk/blogs/thereporters/ro...the_city_1.html

Looks like the blood-letting hasn't really started yet. ;)

First out the door will be many of the creators of the current crisis: the manufacturers and traders of assorted asset-backed securities that you can hardly give away right now; all those debt whiz-kids who engineered the poisonous collateralised debt and loan obligations; the banking servants of a hedge-fund world that’s shrinking fast and of a private-equity industry in cryogenic storage

I wonder what sentiment will be like in the posh parts of London when the big "headcount reductions" start?

...."First out the door will be many of the creators of the current crisis:" .....trying to get the evidence out of the way before the investigators begin...... :lol::lol::lol::P

Share this post


Link to post
Share on other sites
Guest grumpy-old-man

my oh my, what a busy day on hpc. I have been out all day.

so many mage bearish threads, so little time to read them all. :D

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 354 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.