DEALMAKING DECLINE FORCES BANKS TO CUT INVESTMENT BANKING JOBS

DEALMAKING DECLINE FORCES BANKS TO CUT INVESTMENT BANKING JOBS

By: Ken Chase.

Estimated reading time: 2 minutes

Bloomberg reported this week that a decline in investment deals has forced banking giant Citigroup to eliminate dozens of trading personnel in its investment banking division. The move comes in the wake of reports that the company’s these banking fee earnings plummeted by 64% in the third quarter of 2022.

Many of Citigroup’s competitors have experienced similar declines in investment earnings and have made their own cuts in recent weeks.

For example, Barclays this week began to reduce its workforce by about 200 personnel after reporting a 45% decline in its own investment banking fee earnings compared to last year. At the same time, though, the firm is apparently still hiring in its investment banking division and has reaffirmed its intent to grow that part of its business portfolio.

Reports also suggest that Morgan Stanley may soon reduce its Asian-Pacific workforce by about 50 jobs, and Goldman Sachs is expected to eliminate hundreds of jobs before the end of the year. Analysts have noted that the industry has been under pressure due to volatility in trading and its impact on the capital markets.

Learn more on this topic

Related Insights

Banking Groups Sue to Block New CRA Rules

Banking Groups Sue to Block New CRA Rules

A group of industry organizations have filed suit to block regulators’ new Community Reinvestment Act rules. According to the plaintiffs in the case, regulators are exceeding their authority with the proposed rules. Additionally, the plaintiffs argue that the new CRA...

Fed Signals No Imminent Rate Cuts Ahead

Fed Signals No Imminent Rate Cuts Ahead

Despite market expectations for imminent rate cuts, the Federal Reserve today confirmed its intent to leave interest rates at their current level. That marks the fourth straight pause on those rates, as inflation has continued to plague American consumers. Inflation...

NYC Sues FDIC for Overdue Signature Bank Taxes

NYC Sues FDIC for Overdue Signature Bank Taxes

New York City is suing the Federal Deposit Insurance Corporation (FDIC) over $44 million in overdue taxes Signature Bank taxes. According to Bloomberg, the suit was filed in a Manhattan federal court on Monday. The suit targets the FDIC in its role as the failed...