Busted: Bankers and The Global Economy

June 26, 2008

More Jobless Bankers Set to Hit Job Market

Citigroup Inc., one of the larger international bank holding companies, will cut 10 percent or about 6,500 of the jobs in its investment banking division here in the States. Citigroup has trimmed more than 350,000 employees around the globe. By the end of March at least 9,000 positions had been cut based on information from the Wall Street Journal.

The Journal voiced that entire trading desks in New York and other cities are expected to be cut and especially hard-hit will be mergers and acquisitions bankers.

Meanwhile, certain investment firms like Stifel Nicolaus and Thomas Weisel are hiring to take advantage of the fire sale of available labor.

Meanwhile, the banking community continues to seek investors in an effort to stop the bleeding from bad securities. State government is piling on as well. California’s attorney general has filed a civil lawsuit against Countrywide Financial claiming the mortgage lender used misleading advertising and other unfair business practices to trick borrowers into taking on risky home loans they didn’t fully understand. Greed and bad business eventually consume the perpetrators. Banking is being forced to look at itself in the mirror.

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