You've heard of Webcasts and Podcasts...welcome to Cubecasts. From our cubicle to yours, here is the third edition of The Weekly Oasis, a newsletter in which Bankerella shares her views on market events, financial news, and things of interest to everyone from gorillas to prospective monkeys.
The Cost of Credit
Today Citi announced another loss -- $5.1 billion on top of last quarter's $9.8 billion, nearly all of it a result of credit and real estate. In response, Vikram Pandit's is expected to cut 9,000 jobs at Citi in the next few months on top of the 4,200 already announced. Some analysts are predicting total job cuts at Citi rising as high as 25,000 in the next few quarters. On Thursday, Merrill Lynch reported a $2 billion loss and said it would cut 4,000 jobs, many from its S&T and IBD divisions. At JPMorgan the cost is estimated at over 10,000 jobs, mostly from its purchase of Bear Stearns. What's the total job toll of the credit crunch? This week's news brings it to over 40,000. All you aspiring monkeys out there, don't panic: there's always room for the best and the brightest, and hiring is continuing, albeit at a reduced pace. Since we've got new jobs posted all the time, check out your alternatives in venture capital, private equity, hedge funds, wealth management, and consulting at WallStreetOasis.com. ...And if you're preparing for interviews, check out what other monkeys are saying this week about interview brain teasers here.
Blandest brand?
Nearly a year after Citi's quirky red umbrella was replaced by a bland red arc, it has been returned to service under its original owner, Travelers, where it will once again symbolize the comfort and security of insurance rather than... well, whatever it was supposed to symbolize under Citi. Are Citi folk tired of their new uber-corporate logo yet? When asked for her opinion, one analyst at 388 Greenwich, Citi's investment banking headquarters, said, "The biggest loss is honestly the umbrella out front." The iconic 16-foot sculpture provided shelter in front of 388G for generations of bankers while they waited for black cars, gossiped, or took a much-needed break from work. Our analyst contact's biggest complaint, however, is that "now there's no place to smoke." Maybe next year there'll be a line in Citi's shrinking budget for a shed out front. Fingers crossed.
Questions? Comments? Send an e-mail to Bankerella@WallStreetOasis.com or send a private message to her at WallStreetOasis.com
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