Citigroup plans to cut 3,000 or more jobs, about 1 percent of employees, and BNP Paribas plans to cut about 1,400 jobs, or 7 percent of its employees, according to the New York Times (“Citi to Shed 1% of Its Workers; BNP Paribas Plans to Cut 7%”). The NY Times was told unofficially that one third of the cuts at Citigroup will come from its securities and banking unit, but the timing is uncertain.
Cost cutting measures persist across Wall Street. It is expected that Goldman Sachs will eliminate 1,000 jobs (3 percent). Bank of America may cut 30,000 jobs on top of the 3,500 jobs cut in recent months.
New York will lose 10,000 more securities industry jobs according to its comptroller, in addition to 22,000 already lost since January 2008.
Overseas, UBS will cut 3,500 jobs, Credit Suisse plans to cut 600 jobs in its investment banking division, and Japan’s Nomura is beginning a new round of layoffs.
Morgan Stanley Smith Barney probably spoke for other Wall Street banks when it announced plans to get rid of “less productive” financial advisors ? i.e., the ones who do not bring in their quota of fees and commissions. No matter what the advertisements say, the name of the game in the securities industry is to sell, sell, sell. A broker who is in the “President’s Circle,” or some such honor, is there because the revenues he or she brought in exceeded a certain threshold. That’s not a good thing for securities buyers. The “less productive” brokers are more likely to take their investment advisory roles seriously, and they are the ones getting the axe. What a world.
Page Perry is an Atlanta-based law firm with over 150 years collective experience protecting investor rights and fighting Wall Street greed.