Late Lunchtime Links: It’s ok – the Japanese DO want to Nomura to have a strong international investment bank

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Takumi Shibata

Takumi Shibata will save you

In what reads a little like pro-Nomura propaganda, but is actually objective journalism, Bloomberg has a long and very reassuring article about the Japanese bank today.

This article says that Jesse Bhattal, the former president of Nomura’s wholesale business, who resigned in January, was the one who wanted to make all the big job cuts at Nomura. The bank's executives in Tokyo didn’t: they “balked” at Jesse's harshness; Jesse walked.

In Bhattal’s absence, the implication is that the international operations of Nomura are now safe.

“Bhattal wanted big cuts in equities, investment banking and the firm’s US business - as much as $1.6 billion,” alleges Bloomberg. “Executives in Tokyo balked, saying it would be a retreat from the firm’s international ambitions and could erode capital reserves.”

It quotes Takumi Shibata, COO of Nomura holdings, as saying that Nomura isn't going to retrench and that it still wants to be a, “global, Asia-based investment bank.”

Does this mean the 4,100 staff at Nomura’s new office near St. Paul’s are safe? Maybe not. Nomura is still making $1.2bn of cost cuts.

The good news - if you're in London - is that Nomura’s staff in peripheral offices seem most at risk.  “We were trying to do too many things, with too many clients, in too many places too much of the time,” Bloomberg quotes William Vereker,  Nomura’s new head of investment banking as saying. “No firm can be all things to all people, especially when you’re building a business.”

Meanwhile:

RBS is cutting 80 jobs in Australia and moving them to Singapore and the UK. (City Am) 

Pieces of JPMorgan are worth one-third more than the current market value (est) based on a sum-of-the-parts analysis. (DealBook) 

French expats are flocking to Hong Kong. (NYTimes)

Being HSBC is about as good as it gets in global banking right now, but that only shows how much the sector is challenged. (Breaking Views)

HSBC could have to pay an additional £3bn in UK tax related to its Asian operations. (Guardian) 

Despite containing a lot of UBS bankers, BTG Pactual has chosen Goldman Sachs and JPMorgan for its IPO. (Bloomberg) 

Henry Kravis and George Roberts each earned $94m last year. (Financial Times) 

The Swiss stock exchange has cut 150 jobs as the strong franc compresses margins. (Reuters)

The CFA Institute says there are a lot of traders who are psychopaths. (CFA Publications) 

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