All had been a little too quiet on the European banking front, and today one of the overseas banking giants with significant operations in the U.S. reared its head and looks to be slashing a couple thousand of them.
According to Bloomberg, UBS has decided to cut about 1,900 employees in its investment banking, equities and fixed income units—in addition to the 7,000 jobs the firm has cut since the credit crisis began in the summer 2007. Meanwhile, analysts estimate that UBS will write-down another $2.7 billion in bad debt in the third quarter, to go along with the more than $44 billion in crisis-related write-downs and credit losses it’s already incurred.
This is, of course, is not good news for the staff of UBS, and it's not good news to the thousands of other finance-related job seekers out there since it means there will be a couple thousand more resumes with big-bank experience to compete with. It also signals that layoffs at other firms (such as Credit Suisse, Deutsche Bank, etc.) might not be too far behind. And don’t forget, at the end of the year, a few thousand Lehman Brothers employees could be shown the door once Barclays fully integrates its latest acquisition (Barclays has agreed to keep on all of Lehman’s North American banking employees at least until 2009, or else pay them severance).
Speaking of Bloomberg, the man himself (Mike Bloomberg, that is) topped headlines this afternoon with his apparent desire to run for a third term as mayor of New York. There’s just one hitch: he has to first change the laws that prohibit a third term. Which is something he seems prepared to do despite New York voters passing term limit laws in 1993 and 1996.
Good thing for Mike he doesn’t have to put the law change to a widespread vote but merely needs a majority vote from the New York City Council and, according to a New York Times poll, he seems to have the support to get it.
Mike for four more? What do you think? Is it essential, in light of the financial crisis, for the city’s economy that Bloomberg stay?
As always, we welcome your thoughts, comments and ramblings below.
Thanks, and happy new year.