Forget bonuses - there's nothing like the threat of redundancy to make people work hard. In December last year, Citigroup announced 1,950 redundancies, of which it said 950 would come from areas of low profitability - "like cash equities."
Today it's become apparent that Citigroup's equities business had an exceptional fourth quarter. The bank's results, released today, reveal that revenues in its equities sales and trading business rose by an impressive 95% in the final three months of 2012 versus the same period of 2011. This compared to an increase of just 9% at Bank of America (whose results are also out) and an increase of just 9% at JPMorgan.
Only Goldman Sachs came anywhere near matching Citi's impressive equities performance, and its own quarterly revenues only increased by 45%.
Needless to say, the fourth quarter ran from October to December and Citi's equities bankers were only officially informed of their imminent demise at the end of this period, suggesting forces other than fear may have been at work. However, headhunters have been pointing out the need for equities redundancies at Citi ever since October, suggesting redundancy paranoia may have been pervaded Citi's equities team long before Corbat actually broke the bad news
UBS is making redundancies. (Dealbreaker)
Head of Asian credit sales leaves UBS in mysterious circumstances. (Finance Asia)
VTB is setting up in Riyadh. (Bloomberg)
Bank of America cut 14,600 people last year. Very few of them were investment bankers. (Bloomberg)
“It would be very difficult to see London remain a financial center” if the U.K. quit the EU, says Sweden’s finance minister. (Bloomberg)
One year on, one third of the 18 investment bankers involved in the Xstrata deal have moved on. (Financial News)
William Barter, head of UK investment banking at Nomura, has left the bank. (Bloomberg)
Goldman Sachs is a phenomenal investment opportunity. (Seeking Alpha)
Exhausted women are hypersensitive to sound. (Science Daily)