Though the headline news on investment banking has been mostly gloomy over the recent quarters, there are signs that some investment banks are seeing strength in their business while others are expanding their investment banking operations. While firms such as Citigroup and Credit Suisse are announcing new cuts to their investment banking unit, there are some lesser known investment banks that are expanding.
Citigroup Cuts 150 More Jobs, Shrinks Bonuses
Citigroup is continuing its cost reduction efforts with a plan to eliminate an additional 150 jobs in its trading and investment-banking division. It also plans to reduce bonuses by up to 10 percent. Citigroup spokeswoman Danielle Romero-Apsilos commented that the firm has been making targeted headcount reductions throughout the year in certain businesses and functions as part of efforts to control expenses during the current environment. Most of the newly planned job cuts will come from the investment bank’s equities trading and underwriting units. The new cuts are in addition to the 1,200 job reductions that the investment bank announced at the start of the year and a further reduction of 350 jobs in July.
Credit Suisse Eliminating 100 Investment Banking Jobs in Britain
Following up on its previously announced plan to cuts $4.3 billion in costs by the year 2015, Credit Suisse is eliminating 100 jobs at its investment banking operation in Britain. Most of the job cuts are within the investment bank’s equities and fixed-income divisions and will occur within three months. The advisory businesses of the firm’s investment banking unit in Britain is also affected by the planned job reductions. Credit Suisse attributed its decision to lay off people to the challenging operating environment in Europe.
Lesser Known Investment Banks Hiring
Stormharbour, a new investment bank that was only set up in 2009 has made 40 new hires this year taking its total employee count to 170. It has offices in New York, London, Hong Kong, Singapore, Tokyo, Madrid and Lisbon. Among the investment bank’s hire is Eric Daniels, former chief executive of Lloyds Banking Group as a senior advisor. Another lesser known investment bank Torch Partners, based in London has announced its expansion into the US with initial operations in San Francisco. It has hired Sanu Desai, a Silicon Valley native with 20+ years experience in advising companies as Managing Director.
Outlook On Jobs
While there are reports that anticipate continuing job losses at investment banks due to factors including the newly framed international rules known as Basel III in response to the 2008 financial crisis, it is somewhat of a surprise to see lesser known investment banking firms trying to take advantage of weaknesses at large investment banks. This is a small positive sign for the investment banking industry. It is also worth noting that though the large investment banks are still announcing job cuts, it appears that the pace of job losses has slowed. This is another consolation for job seekers within the industry. At this time however, there are no signs of large investment banks planning mass hiring so that may continue to keep the job market in check near term.