BNY Mellon is likely to lay off employees, possibly by the end of June, but details on who may be impacted by the cost-cutting move are still sketchy.
The reductions in staff will be in different parts of the company, and will be achieved via attrition, actual layoffs and halting new hires, the Pittsburgh Post-Gazette reported.
The number of layoffs was called “substantial” by the Pittsburgh Business Times. As of now, BNY Mellon expects to make a charge of between $80 million and $100 million for severance costs during Q2, according to statements made last week at the UBS Global Financial Services Conference in New York. The layoffs would save about $100 million a year.
“We’re not disclosing locations, numbers or groups,” Ron Gruendl, a spokesman, told the Business Times.
On the other hand, BNY Mellon now has a few hundred positions open in Pittsburgh, where it has more than 7,600 employees. In addition, the bank employs about 1,300 in Massachusetts, with 22 current openings at its Westborough offices, according to the Worcester Business Journal.Globally, BNY Mellon has about 1,000 available jobs. The total number of employees is around 50,000.
Earlier this year, CEO Gerald Hassell stated how “regulatory and compliance expenses have risen substantially.” During the recent quarter, staff expenses were higher than during the same period a year earlier.
It has also been reported that BNY Mellon may also sell its corporate trust business. That unit now has about 3,500 employees working in 61 offices. The sales price would likely be $2.5 billion, or greater, based on news reports.
Last month, some shareholders complained the bank should do more to cut costs and suggested selling the asset management business, according to the Pittsburgh Tribune-Review.
There are reports too that the bank has entered into a contract to sell its headquarters in lower Manhattan to Macklowe Properties for $585 million. The deal should be completed by the end of Q3. The headquarters will be moved to a new location. It was reported too that BNY Mellon will sell its stake in a fund-management, joint venture in China, according to The Wall Street Journal. The likely buyer is Shanghai Leadbank Asset Management Co.
Working in financial services is not considered an advantage for those with political ambitions, unless the job itself involves standing up for the industry.
If you want your parents to help you start your career in finance, this is how they should go about it.
BNP Paribas SA, in possible trouble with U.S. officials for alleged sanctions violations, found an ally in Bank of France Governor Christian Noyer. She said the transactions were in line with French and European rules, which sends a signal to U.S. officials about a sizable fine – and possible job cuts – that could follow.
Ben Bernanke, former chairman of the Federal Reserve, a noted baseball fan (especially of the Washington Nationals), wants to follow Bud Selig as commissioner of Major League Baseball, according to some new speculation. The rumor was reported on CNBC, but so far there is no comment from Bernanke, who is now working at a think tank.
Sharlyn Wu, a Hong Kong-based banker suspended by UBS AG, while the bank undertook an internal review surrounding the hiring of the daughter of a Chinese chemical company's CEO, apparently has left the bank. The news of her exit comes as U.S. regulators are reviewing hiring practices of banks in Asia.
A UK regulator has fined Barclays $43.9 million for allegedly manipulating gold fix, and it warned the bank about lax controls. Barclays was told it failed “to adequately manage conflicts of interest between itself and its customers."
Ken Xu, a former SAC Capital Advisors manager, is likely to launch a hedge fund in China. SAC pleaded guilty to insider-trading charges in 2013.
Buzz Around the Office
Fresh-baked bread is popular in New York City and one man decided to hand some out, very randomly. The problem is that he allegedly stole a bakery truck filled with baguettes, whole-wheat rolls and sourdough bread – valued at $8,000.
David Bastar stole the truck belonging to Grimaldi's Home of Bread on the Upper East Side last week, while the driver was delivering bread to a real customer, police said. Bastar then left the loaves of bread in front of random businesses, who were not actual customers.
He was wearing only his underwear at the time, news reports said. He was charged with criminal possession of stolen goods.
Quote of the Day
“It's a kind of spiritual snobbery that makes people think they can be happy without money.”
- Albert Camus