The chief executives of Nomura and Royal Bank of Scotland should probably get together for a consolatory drink this week: Both of their investment banking operations are being completely overhauled.
RBS plans to restructure its unit into a markets division and an international banking unit. It will exit cash equities, corporate broking, equity capital markets and mergers and acquisitions, all businesses that have proved to be unprofitable and which will be closed or sold.
With such a drastic revamping, it's only natural that layoffs would follow, though try telling that to the British public, which is fed up with RBS's constant job eliminations. Last year, the bank said it would cut 2,000 in the division. This time around, it will cut an additional 3,500 over the next three years. There are currently 19,000 employees in the investment bank.
"It is clear that, particularly in the wholesale banking arena, significant new pressures have emerged," Chief Executive Stephen Hester said yesterday.
Whether the bank, which is owned by the British government, is able to survive those pressures remains to be seen.
Fifty partners have left Goldman Sachs in 2011, some through their own choice and others at the suggestion of the firm. The pool of partners who have left is one of the biggest in the past 13 years.
It's official: Job seekers shouldn't blithely expect to find a job quickly in Asia. Banks aren't investing as much in their operations there as they were last year.
Raymond James wants its newly acquired Morgan Keegan brokers to stay put. To help convince them, it's setting aside $215 million in retention payments. Not too shabby.
While the government isn't cracking down on bonuses just yet, the same doesn't apply for investors and pension funds, who want to have binding votes on executive pay.
Richard Moore, the former chief executive of MF Global Europe, is heading over to Lloyds to serve as head of trading operations. He was at MF Global for just six months before the firm imploded.
A new salary survey conducted by the National Association of Colleges and Employers finds that 2011 graduates with bachelor's degrees saw their salaries increase 2.3% from the class a year below them. Accounting majors experienced a 3.7% increase over last year.
Networking Help (Come Recommended)
LinkedIn apps like LunchMeet and CardMunch may make it easier to keep track of all the contacts you meet through networking.
Buzz Around the Office
Breakfast (YouTube)
Rhino Iguanas like Kix, too.
List of the Day: Important Queries
To get a sense of how your boss fits into the organization and what their expectations and goals are, it's worth asking these some questions like these.
1. What quality does your boss value most in her direct reports?
2. How did she get to where she is today?
3. What are her interests and hobbies?
(Source: Forbes)
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