CORRECTED: Wachovia says cutting fixed-income jobs
|
|
|
(Corrects CEOs surname to Thompson)By Joseph A. GiannoneNEW YORK (Reuters) - Wachovia Corp Chief Executive Kennedy Thompson on Monday told investors his hard-hit U.S. regional bank was cutting back corporate and investment bank jobs to reduce costs amid the ongoing market slump.The Charlotte, North Carolina, bank plans to cut a third of its fixed-income headcount, as well as a 10 percent reduction in corporate and investment bank support staff, Thompson said at a UBS bank investor conference.Wachovia, which marked down fixed income assets by $5 billion so far in the credit crunch, is "exiting non-client-driven businesses," Thompson said. The comment echoes moves made by other firms, where mortgage and debt trading businesses generated the bulk of losses."Many structured product businesses are gone. Any business with leverage on top of leverage will not be part of our model going forward," he said.A bank spokeswoman could not immediately say whether the cuts were the same as some 500 investment bank job reductions disclosed last month during a first quarter conference call.At that time, Chief Financial Officer Tom Wurtz said headcount in global markets and investment banking had been reduced by 14 percent this year and would be cut an additional 12 percent during the second quarter.Combined, these moves will eliminate one of four capital markets and investment banking jobs, the bank said.(Reporting by Joseph A. Giannone, editing by Phil Berlowitz)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Hershey, Nestle, sweeten war for Cadbury
Washington - Hershey and Nestle are expected to jump into the war over Cadbury sweets, media reports said Saturday, just weeks after the British-based stalwart rejected a hostile bid by US Kraft Inc. The growing market for chocolate in the developing...
US stock drop slightly on Dell profits, mixed for week
New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
GM: Opel restructuring plan by mid-December; cuts up to 25 per cent
Washington - US carmaker General Motors will present a new restructuring plan for its European operations by mid-December, Nick Reilly, the new head of GM Europe, wrote on his new blog Friday. While the details were still being hashed out, Reilly war...
US stock sell-off on fears of weak recovery
New York - US stocks followed global markets in a broad decline amid investor fears over the world's uneasy recovery from recession. Major US stock indices fell about 1 per cent on average, following hefty declines in the DJ Euro Stoxx 50 and Japan's...
US leading economic indicator gains 0.3 per cent
Washington - A key measure of US economic performance gained in October, according to a private research group Thursday, signalling that a broader recovery may be taking hold. The New York-based Conference Board's Leading Economic Index added 0.3 per...
US stocks fall slightly on technology earnings
New York - US stocks posted modest losses Wednesday on poor profit forecasts from technology firms and a surprising dip in home construction. Earnings from Salesforce.com and Autodesk were worse than expected. Other technology shares losing ground in...
Obama acknowledges danger of double-dip recession if deficit grows
Washington - President Barack Obama said Wednesday he was mindful of the dangers brought on by the country's skyrocketing budget deficit, warning that too much spending could lead the United States into another recession. Obama, who has taken heavy c...
|
|
|
|
|
|
|
|
