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Morning Coffee: Will RBS layoff 80% or 90% of its investment banking staff? Jobs at Goldman’s own hedge fund

RBS

Barely has the ink dried on Barclays’ cost cutting plan, than it’s been completely eclipsed by the enormity of imminent layoffs at RBS. At the very worse, Barclays’ investment banking layoffs have never been put at more than 30% of the total. At RBS, on the other hand, up to 90% of investment banking staff are at risk of losing their jobs.

The coming RBS massacre was first intimated by the Financial Times, which reported that up to 14,000 jobs could go from RBS’s investment bank. This was later reiterated by Bloomberg. As we pointed out last week, no one knows exactly how many people RBS’s investment bank employs. – In its annual report, the bank put the number at just 3,700. An RBS spokesman told us that this applies to front office staff only and that the bank has 16,000 to 18,000 investment banking staff in total. If the FT and Bloomberg are right, either 80% or 90% of them could lose their jobs in the near future.

Separately, Goldman Sachs still has an in-house hedge fund. Known as ‘Goldman Sachs Investment Partners’, it was started in 2007 and remains in existence despite the Volcker Rule. We know because the New York Times reports that David Solomon, a former Goldman prime brokerage professional, has gone to work there.

Meanwhile: 

Upset as the EU suddenly says it wants its bonus cap to apply to all banks and asset managers – not just the biggest banks. (Fast FT) 

Banks won’t have to comply with the EU bonus regulations until January 2015. – This year’s allowances are safe. (WSJ) 

J.P. Morgan has become the latest bank to appoint a whole battalion of co-heads in M&A. One is a woman. (Reuters) 

Senior M&A banker worked on an average of 10 transactions a year over 3 decades. (Bloomberg) 

UBS says Macquarie pays too much, again. (ABC) 

Standard Chartered has cut its bonus pool by 9% and is targeting a return on equity ‘above 10%’ instead of the mid-teens it was chasing before. (WSJ) 

So much for growth in European DCM, European corporates are still going for loans. (Euromoney)  

The notorious ‘executive wing’ of RBS’s Edinburgh head office is being transformed into an entrepreneurial hub. (Guardian) 

How I stay awake at work without drinking coffee. (Huffington Post) 

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