Adam, look, this is just kind of been a continuing story of job cuts and seeing
them more in Asia. What do we know about this latest round
of job cuts in the details? Well, yeah, at the moment, Danny, what
we know is that Goldman and Citi are both going to be embarking this week on
on kind of like a new round of reductions here and that in their head
count. What we know is that essentially at
Goldman, there is going to be around 15 deal makers that will be affected, about
nine from equity capital markets. And then at Citigroup, it's it's around
20 jobs that are mainly at more junior levels.
And of course, a lot of this has to do with the fact that revenue from stock
sales and also mergers is under real pressure and in the second quarter.
And that's kind of a key reason here that they're needing to make the
reductions. But, of course, Wall Street banks as a
whole have been continuing to face this pretty tough environment for some time
now. Dealmaking has been under pressure
across the world. We've seen a particularly drop of late,
not just in this region, but in the rest of the world as well.
And so it's a continuing picture here of of these banks trying to readjust,
trying to stay nimble and trying to just pump resources where they need to at
this point in the cycle when there are clear kind of opportunities still
available. But they need to just reduce in some of
these areas. And that's what we're seeing really
here. Goldman on Citi.
But there are short term costs. And we heard some of that from City CFO
yesterday, who is talking about the potential for expenses to rise because
of severance packages. What was the dynamic there?
Yes. So really, what Mark Mason was talking
about, the CFO at Citigroup at a conference on Wednesday was about the
expenses associated with having to make people redundant.
Of course, it's not a zero sum game and it can be quite costly.
And he was saying that it could lead to expenses climbing by as much as 400
million dollars this quarter compared to the first three months of the year.
So so clearly a material number there. And most of that city is is tied to the
severance packages that were B related to the departure of about sixteen
hundred jobs. So so clearly there's a there's a need
to kind of for these banks to they're wanting to get ahead.
They're wanting to say and be open and transparent with shareholders, but also
with their staff that, you know, these are the numbers around what we're trying
to do here. We're trying to position fault for
what's going on ahead. But clearly, it's a sign of continued
worry about the deterioration in not just the economy, but in the areas of
investment banking that have been particularly hit.
And we talked about earlier and I am an a and an equity capital markets
particularly under pressure at the moment.