It was always going to happen after the resignation of Kenichi Watanabe and Takumi Shibata, the architects of Nomura’s global expansion, but the bank’s overseas staff should ready themselves for deep cuts in the coming months.
Nomura’s new chief executive Koji Nagai is likely to focus on the bank’s Japanese business, meaning that the international operations are going to be scaled down, according to the Wall Street Journal. When Jasit “Jesse” Bhattal, its joint deputy president resigned last year, he suggested that the combined $1.6bn of cost cuts announced in 2011 didn’t go deep enough.
Now, it seems Nomura has taken note. In particular danger, as we noted previously, is its underperforming equities division, with the bank switching its focus to fixed income.
And what about Europe? There’s definitely some scope for trimming – since the beginning of 2011 to the end of June 2012, just 378 people have departed from its European business. Meanwhile, year-on-year, EMEA revenues declined by 26% in the first half.
Elsewhere, Deal Journal also tracks the ex-Lehman departures from Nomura since 8,150 staff joined in 2008. Now, Lehmanites account for 30% of total headcount (although employee numbers have grown by 37% since then) and the majority of key executives have left.
A good sales trader must have a thick skin and a strong liver (Financial News)
UBS has hired Laurence Grafstein to co-head its Americas M&A team (Reuters)
Man Group has been downgraded by Moody’s (Times)
The chairman of ICBC received $308k deferred over three years for 2011. Jamie Dimon was paid $23m (Bloomberg)
RBS has lost a prominent risk manager and compliance staff over Fed investigation into Iran dealings (Financial Times)
Lloyd Blankfein started out as a lifeguard, and other first jobs of prominent Wall Street players (Business Insider)
The bank worker involved in the real Dog Day Afternoon recalls the day, 40 years later (New York Times)