Lunchtime Links: $1bn worth of cuts coming to Nomura; lessons on how to annoy poor people

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Nomura, as was highlighted earlier this week, is making redundancies. Today, it revealed that it’s looking to cut out $1bn from its wholesale division by March 2014 (in addition to the $1.2bn implemented earlier this year). Exactly where the cuts will occur will be revealed next Thursday, but it’s safe to say that Europe will feel the majority of pain.

“Job cuts are unavoidable given the severe global business environment. Nomura will have to explain how the reductions will help to improve its bottom line,” Azuma Ohno, a Tokyo-based analyst at Barclays told Bloomberg.

Equities and investment banking, particularly the London offices where job cuts have been light compared to Nomura’s peers, are obvious targets for cuts, but it’s unlikely to be the only area. As we pointed to on our Asian websites, Hong Kong and Singapore will likely take their fair share of cuts.

The one positive is that Nomura is likely to strengthen its cross-border M&A advisory business.

Separately, while bankers are currently the social pariah associated with excessive greed, the world’s richest woman is making a sterling effort to attract public outrage.

Poor people only have themselves to blame for not making more money, she says: “If you’re jealous of those with more money, don’t just sit there and complain. Do something to make more money yourself – spend less time drinking or smoking and socialising, and more time working.”

There you go – the secret of success.


Germany's finance minister is very much in favour of a 1:1 bonus ratio (Financial Times)

Banks employ too many people in back office and advisory functions. It’s headcount, rather than bonuses that needs to be cut (Financial News)

Jenkins is reducing Barclays profit targets to 11-11.5% ROE; will unveil a “transformational plan” in Q1 next year (Financial Times)

Junior hedge fund traders are pining for pre-2008 glory days when bonuses were substantial (Financial Times)

There will only be “sporadic” departures from Barclays investment bank following Jenkins’ appointment (Reuters)

Morgan Stanley has offered Nicolas Sarkozy £200k for a 45 minute speech, followed by 15 minutes posing for photos (Daily Mail)

Struggling Gleacher is exploring its options (Financial News)

The US is also likely to get involved in the Barclays Qatar probe (Financial Times)

J.P. Morgan has over 100 lawyers conducting an internal investigation over the ‘London whale’ case (Reuters)

J.P. Morgan is likely to sever ties with some brokerages it provides clearing and settlement services for and reduce its association with others (Wall Street Journal)

RBS’s new retail head has been given a ‘golden hello’ of £3.2m (Telegraph)

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