WSO Rumor Mill: More Layoffs coming at DB, HSBC...and BoA?
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on 12/2/08 at 12:48am
Some industry insiders have the following rumors to report. Some of this may not be news to you and none of this can be verified, but we thought we would at least give everyone a heads up so if you are in one of these divisions you can take the proper steps to prepare for some (potentially) grim news.
- * On December 8th, Deutsche Bank may announce further layoffs in Capital Mkts / S&T in the New York office.
- * HSBC is planning on having layoffs to IBD and S&T in London before year end
- * The CFO at Merrill supposedly isn't too happy about BoA's future plans for the IBD and S&T divisions of the firm. Reportedly, Bank of America wants very little to do with Merrill's investment banking and S&T divisions and instead plans to focus on Merrill's Asset Managemnt business. What this means for the future of IBD and S&T at Merrill and the timing of it all?...your guess is as good as mine.
Good luck out there,
Patrick
ps - if you have conflicting information please share it. like I mentioned above, none of these rumors can be verified.






I don't understand what BOA
I don't understand what BOA is trying to do here...haven't Merrill's S&T and IB been very profitable? Are they just going to absorb certain groups? Ugh...Merrill...ouch
This is disturbing to hear
This is disturbing to hear about Merrill's IBD. I would have thought BOA might replace their own bankers with a bunch of Merrill's bankers. I mean, last time I check Merrill's IBD > BOA's IBD. Sad times.
BoA
I don't understand what BOA is trying to do here...haven't Merrill's S&T and IB been very profitable? Are they just going to absorb certain groups? Ugh...Merrill...ouch
yeah, take this with a grain of salt -- my source is here at Wharton and has been talking with some mid to upper-level execs at these firms.
He wasn't sure what BoA was actually going to do with IBD and S&T. I had the same reaction -- well what the hell are they going to do with these divisions if they don't support them?
I don't see them shutting everything down but maybe scaling them back slowly...who knows, I think anything goes in this market.
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You're worrying me Patrick.
You're worrying me Patrick. I didn't need to hear about this Merrill thing before finals.
Observance
I did my analyst gig at ML a while back. Great set of folks and it's sad to even contemplate they'd disband the IBD/S&T. A lot of good (and painful) memories there.
Why would BOA pay nearly 40
Why would BOA pay nearly 40 billion for just the asset management business? I thought BOA was particularly interested in the brokerage unit.
Makes no sense to me why
Makes no sense to me why BofA would not be interested in Merrill's S&T and IBD operations. The talent is there, and Merrill has an exceptional reputation in this field.
Sure, deal flow is down and prop risk taking will be reduced but the recession will eventually end.
Why in the hell would Lewis pay so much for Merrill only to discard 2 jewels? Then again, the man has a reputation of overpaying...
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Good luck to everyone. One
Good luck to everyone. One way or another, we'll all make it out of this.
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We're about to enter a Great Depression.
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I'm making it up as I go along.
Well here's some more info on that...
http://www.cnbc.com/id/28014095
The author says that the
The author says that the cuts should be coming before the end of the year. How then, are the majority going to be from Merrill? Are they going to make Merrill lay off a large portion of their workforce?
Edit: Yes, I realize that they can lay off countless Merrill bankers/traders after the merger, but it's not supposed to close for another few months. I guess we'll hear some sort of announcement within the next few weeks...
Reuters
"Many of the cuts as much as 10,000 employees, mostly from Merrill Lynch & Co., Inc. will come from the investment banking operations."
http://www.reuters.com/finance/stocks/keyDevelopme...
30,000 now?
CNBC now reporting as many as 30,000 employees may be cut (heavily on the ML side)
To me that almost makes no sense... didn't BOA's Ken Lewis snag ML b/c of their investment banking business that BOA didn't quite have?
they didn't snag ML b/c of
they didn't snag ML b/c of the banking business but because of their brokerage business.
BofA is making a mistake if
BofA is making a mistake if they lay off all the ML people, and eventually they'll realize that. BofA had a tremendous opportunity to become a preeminent player on the Street with the ML acquisition, but now they're throwing that out the window. Still, if BofA decides to get rid of the ML S&T and IBD divisions, they'll be great assets to some other company and BofA will go back to being a second tier financial services company.
Yep, a second tier financial
Yep, a second tier financial services company that just so happened to make it through this crisis in a position to buy a phenomenal, top notch company that was forced to sell itself for a fraction of its worth after it almost ran itself into bankruptcy. Just because a company isnt strong in IBD and S&T doesnt mean they arent a strong financial services company. Is Wells Fargo second tier too?
Why is so hard to understand that Lewis bought ML for its brokerage force, not its IBD and S&T. He clearly is looking for stable revenues which retail banking and wealth management bring. He is not the type of guy who would make $20B one year to lose $25B the next.
Obviously Merrill has a lot of talent, but Lewis has the luxury of being choosy and that is what he is doing - taking the most stable, consistent business lines and employees and getting rid of the rest. I think alot of people are missing the point that Ken Lewis doesnt want BofA to be Wall Street. That is not their business model. I would be surprised if he only laid of 10,000.
right but if he doesnt want
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Who would be looking to to
I would argue that banking
Even in Merrill, who's the
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boutiques + cash flow issues
I guess given the above
HOW DO YOU COME TO THE
LOL, before this crisis, a
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thank you. i apologize for
The problem is, at the
Some of you all are
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It's not intelligence, it's
However, HerSerendipity I
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Like I said earlier thread,
At the analyst level,
Devil's Advocate - I agree.
are you guys talking about NYC or Charlotte?
Negligible difference
I never said I'd be a great
Maybe the BOA kids just
Heard that DB and William
I won't ever win my
I was just kidding around. I
I almost laughed out loud
I heard something about most