Crisis: US Banks Are Now Cutting 3,000 Roles Globally
US banks are now cutting 3,000 roles globally in the latest spree.
The US bank’s latest job cuts will hit 3,000 roles globally across most of its key divisions, as it embarks on its second round of redundancies within the space of six months, says FinancialNews London.
Morgan Stanely (NYSE:MS) recently cut around 70 dealmakers in Europe; the latest round of layoffs to hit the Wall Street bank this week.
Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decision earlier this week on Monday according to people familiar with the matter.
At the senior level, approximately 10 managing director dealmakers were cut in the region, the people added.
In January, Morgan Stanley’s rival Goldman Sachs laid off more than 3,000 employees and cut executive salaries.
Around 50 dealmakers were hit by the job losses in Emea, FN reported.
The ongoing deal triggered several big banks to trim their workforce this year.
Bank layoffs will continue throughout the year.
The latest 1,000 bank employee layoff by JPMorgan (NYSE:JPM) has creating panic in the banking industry.
About 1,000 First Republic (OTCMKTS:FRCB) employees have lost their job across all of First Republic’s businesses, per Financial Times.
“The cuts are a further blow to First Republic employees, who have already had a challenging two months.
Within the next 30 days, JP Morgan will notify First Republic employees of their job status, and not everyone will be offered a position with the bank.
Bank Accounts Are Being Frozen
JPMorgan is freezing customer bank accounts in the latest bank scandal.
Republican attorneys general from 19 states say the bank is “persistently” discriminating against its own clients and closing bank accounts without warning.
The law enforcement officials, led by Kentucky Attorney General Daniel Cameron, sent a letter to JPMorgan CEO Jamie Dimon stating that the banking giant’s practices go against the company’s own policies on equality, per Business Insider.
The letter, which has now been published by the Wall Street Journal, states that JPMorgan has repeatedly discriminated against customers based on their religious or political beliefs.
“It is clear that JPMorgan Chase & Co. (Chase) has persistently discriminated against certain customers due to their religious or political affiliation.
This discrimination is unacceptable.
Chase must stop such behavior and align its business practices with the anti-discrimination policies that Chase proclaims.”
The New York City (NYC) Banking Commission said on Thursday it is freezing new bank deposits at Capital One (NYSE:COF) and KeyBank.
Following the first-ever public hearing held by the New York City Banking Commission on Thursday, all three members voted to freeze deposits at Capital One and KeyBank after the banks failed to submit required plans demonstrating their efforts to root out discrimination.
Bank Lay-offs Continue
Hundreds of Silicon Valley bank employees are being let go quick, per Axios.
First Citizens Bancshares (NASDAQ:FCNCA) on Wednesday laid off nearly 500 Silicon Valley Bank employees.
According to an email sent this morning to all employees by First Citizens CEO Frank Holding Jr., none of the eliminated position were “client facing,” nor were they India-based support staff.
A source also says the layoffs represent less than 3% of First Citizens’ total workforce, according to Axios.
Holding Jr. wrote the following statement:
“Given the challenges faced by SVB in early 2023, it is increasingly clear that we must make decisions to right-size our scope and scale to remain competitive.”
“As a result, we are taking difficult but necessary actions to ensure that our workforce and costs are appropriate for a bank our size. That means that some members of our team will be transitioning out of the business effective today.”
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