www.bloomberg.com/news/2011-11-22/wall-street-unoccupied-with-200-000-job-cuts.html -> mobile.bloomberg.com/news/2011-11-22/wall-street-unoccupied-with-200-000-job-cuts.html
Gulf of Mexico, on the day his company reported its largest-ever quarterly loss. "Wow, the sun just set," Brady said to his wife and two colleagues attending a conference with him, he recalled in an interview.
Brady and 1,065 colleagues joined a wave of firings that has washed away more than 200,000 jobs in the global financial-services industry this year, eclipsing 174,000 in 2009, data compiled by Bloomberg show.
UBS AG (UBSN) who's now a London- based managing partner at Brazil's Banco BTG Pactual SA. Wall Street rebounded from the financial crisis of 2008 with the help of unprecedented government support, including loans from the US Federal Reserve.
Nothing There' Now, faced with higher capital requirements, the failure of exotic financial products and diminished proprietary trading, the industry is undergoing what Steven Eckhaus, chairman of the executive-employment practice at Katten Muchin Rosenman LLP, called "a paradigm shift." The New York attorney, whose clients have included former Lehman Brothers Holdings Inc. Chief Financial Officer Erin Callan, said he has stopped giving his "spiel" about inherent talent leading to new work.
"These are by far my darkest days," said Scott Schubert, 49, who was dismissed in late 2008 as a mergers-and-acquisitions banker at Jefferies, a New York-based securities firm, and has been unemployed since. "It's harder and harder to look for a job and feel that there's nothing there." HSBC, BNP Paribas Banks, insurers and asset managers in Western Europe have been hardest hit, announcing about 105,000 dismissals this year, 66 percent more than the region's losses in 2008 at the depths of the financial crisis, Bloomberg data show. The 50,000 job cuts in North America this year are more than twice last year's and fewer than the 175,000 in 2008. Almost every week since August has brought news of firings by the world's biggest banks.
Both banks are trimming about 10 percent of their employees. Last week, BNP Paribas, France's largest bank, said it will cut about 1,400 jobs at its corporate and investment- banking unit, and UniCredit, Italy's biggest, said it plans to eliminate 6,150 positions by 2015. "It's a once-in-a-generation challenge," said John Purcell, founder of London-based executive search firm Purcell & Co. "Everyone who has worked in the City since 1985 will have no idea of how to cope with this level of dislocation."
London's City and Canary Wharf financial districts said the stress is contributing to panic attacks, binge drinking and chest pains. "Because there are fewer jobs, people are unhappy about being stuck," Brener said. "They don't have options about moving, and there is a sense of feeling trapped." London hiring could be frozen next year, according to the Centre for Economics and Business Research Ltd. Headcount in the City and Canary Wharf may fall to 288,225 by the end of the year, 27,000 fewer than in 2010 and the lowest since at least 1998, when there were 289,666 jobs, according to the London- based research firm. Wall Street won't regain its lost jobs "until about 2023," Marisa Di Natale, an economist at Moody's Analytics in West Chester, Pennsylvania, said in an e-mail.
Societe Generale (GLE), France's second-largest bank, whose shares are down 60 percent this year. When he called his wife to tell her the news, she was home watching "The Company Men," a film about corporate downsizing, he said. It wasn't the first time Reiner had lost a job on Wall Street. for 14 years until the firm collapsed in March 2008 and was taken over in a fire sale by JPMorgan Chase & Co. He said he was happy to have some time off with his family and go to Little League baseball games. When he began looking for a job, he "wanted to find a place for the next 14 years," he said. A recruiter brought him to Paris-based Societe Generale. It's harder to talk about losing a job the second time, Reiner said. Opportunities for employment "evaporated" as the European debt crisis escalated, he said. Now he spends his time going to his daughter's field hockey games and managing his investments. He's planning to make maple syrup from the trees in the backyard of his home in Briarcliff Manor, New York. Fruitless' Search For Schubert, the former Jefferies banker in his third year looking for work, the longer he's out of a job, the harder it is for him to tell his 10-year-old son to do his homework, he said. "It might seem outwardly to him that I've given up," he said in an interview this month from his four-bedroom home in Glen Ridge, New Jersey. By the middle of 2010, more potential employers seemed interested, and he felt "something was imminent," he said. This year, he has become increasingly disheartened by bad news on Wall Street, and it's more difficult to stay in touch with former colleagues as time goes by, he said. Hurricane Irene On the August weekend of Hurricane Irene, training to coach his son's soccer team alongside younger fathers, being "overly competitive for a man of my age," Schubert twisted his right knee, he said. He aggravated the injury doing yard work and worries how much his health insurance will help, he said. While his investment choices haven't been "too terrible," he will consider selling his house if he doesn't find a job.
Lloyds Banking Group Plc (LLOY) for more than 20 years until last month, said he doesn't plan to look for work until early next year, "when budgets become clearer and perhaps conditions improve." Shares of his former company, controlled by the British government since a bailout in 2008, have fallen 64 percent this year, and the bank has posted a pretax loss of 386 billion pounds ($6 billion) in the first nine months. RBS Cuts Another lender backed by the UK, Edinburgh-based RBS, has announced about 30,000 job cuts, including 2,000 this year, since receiving the world's biggest government bailout in 2008.
Tim Leary, 29, a director in high-yield and distressed trading, lost his job there on Nov. He drove back to Manhattan from his office in Stamford, Connecticut, and put together a resume for the first time in years. He said he plans to spend "a fair amount of time figuring out what the landscape is" before starting his search. Falling Bonuses "Unfortunately, the industry always seems to get it wrong and they over-hire," said Philip Keevil, 65, a former head of investment banking at SG Warburg & Co. and now a partner at New York-based advisory firm Compass Advisers LLP. "They are over-optimistic and then periodically throw large numbers out." Morale on Wall Street and London is "probably as bad, if not worse" than it has been in decades, said Keevil. Wall Street bonuses are expected to fall in 2011 from the $128,530 average last year, DiNapoli, the state comptroller, said in October. Even so, when Goldman Sachs set aside 24 percent less to pay employees in the first nine months than in the same period last year, the amount, $10 billion, was equal to $292,836 for each of its 34,200 workers as of Sept.
as his single mother earned when he was growing up in western Massachusetts. "It was like winning the lottery to get that job," said Laikind, who worked as an associate on the New York-based bank's high-yield credit-trading desk. He got a job on Wall Street because he "was under the impression that it was a more meritocratic environment," and "my hard work and intelligence would be paid off," he said. Then, after financial regulations curtailed proprietary trading, the job became "less appealing." He said he didn't like smiling at clients while having to figure out how to profit from them. In July, after a vacation, he called his boss to quit, he said in an interview from Quito, Ecuador, where he is now working for Equitable Origin LLC, a start-up that offers a certification system for oil exploration. His salary is less than 5 percent of what he made at Citigroup, he lives with intermittent hot water, and he was robbed at knifepoint last month, he said. Sagging Mattress His tone was different in a later e-mail. "I wasn't brought up in luxury, so I like to think I can tough it out," he wrote, describing the sagging mattress he slept on in jeans and a hooded sweatshir...
|
http://csua.com/feed/