Deutsche Bank has not made many redundancies. What’s more, costs accounted for 111% of revenues at its corporate and investment bank in the fourth quarter. In this context, City Am’s claim this morning that Deutsche is making 1,000 additional redundancies, mostly in London, and that entire business lines could be shut down, therefore seemed quite reasonable.
Deutsche is denying everything however. It has told Bloomberg it has no redundancy programme in place. This doesn’t preclude the implementation of a programme next week, however.
Separately, as it becomes apparent that Stephen Hester earned less than all other RBS executives for last year, Financial News reports that Antonio Polverino has passed swiftly on from RBS. Polverino joined in 2007 on a reputed £7m guarantee. Last year, RBS paid its average member of code staff £835k. The new reality may have been too much to bear.
Citigroup failed the stress test and now… its stock is falling. (Bloomberg)
The buyside will need fewer traders and its traders will need to know more about technology. (Advanced Trading)
Simultaneous staff decimation at Lloyds and RBS - especially in IT. (Finextra)
The average bonus appears to have fallen 42% last year. (William Wright)
It’s actually very difficult to get onto a top MBA course. (Wall Street Journal)
Man leaves Goldman Sachs for Macquarie. (Bloomberg)
Today's Goldman letter coincides with the inauguration of its new global head of corporate communications. (Financial Times)
"Throttling people with your mind continues to be sidelined in the way the firm operates." (Daily Mash)
At the bottom of the Goldman resignation letter: an advert saying, "The end time is here." (NY Times)