While French banks like Credit Agricole pull back from investment banking and face potentially serious curtailment by a resurgent Socialist Party, everything is totally fine at Citigroup in Europe.
So says Vikram Pandit, who has given an interview to Bloomberg claiming Citi's level of risk in Europe is, "extremely manageable." Pandit doesn't actually think the euro is in danger of disappearing, arguing that, "The Europeans will figure it out. They'll get through the debt crisis and get to the other side being fully committed to the euro and the euro zone."
However, if the Europeans don't figure it out, Citigroup could still prove a good place to be. Not only is its exposure to Europe "manageable," but Bloomberg points out that 50% of its profits come from emerging markets.
CEO of Credit Agricole said there won't be major job cuts. (Le Figaro)
The real questions are whether Italy will get complete and unfettered access to the European Central Bank, and when we will know. (Economix)
European high yield RIP. (Financial Times)
The proposed transaction tax would cover OTC trades and would apply to the notional underlying amount of derivatives, making some of them prohibitively expensive. (Financial Times)
An estimated 80 per cent of the new tax would be levied in the City. (Telegraph)
The British economy will not be rebalanced - towards more making, and less financial engineering - unless and until the City is less dominant. (BBC)
UK banks should cut bonuses and dividends rather than reduce lending to customers, the Bank of England's financial policy committee has warned. (Financial Times)
"Traders behaved more egotistically and were more willing to take risks than a group of psychopaths who took the same test." (The AtlanticWire)
Traders on market-making desks are often paid handsomely in a manner indistinguishable from prop traders - by bonuses based on how much profit they make the bank. (ProPublica)
Protestors want to occupy the stock exchange and set up kitchens. (Telegraph)
How exercise can strengthen the brain. (~NY Times)
How not to write an application email. (Dealbreaker)