Three Giant Banks Now Announce Unexpected Layoffs

May 15, 2024

Updated on May 16, 2024

Three giant banks now announce unexpected layoffs due to a slow recovery in listing and dealmaking activities, sources confirm.

Two Chinese companies and JPMorgan have become the latest banking groups to cut jobs in China as a slow recovery in listing and dealmaking activities force them to ramp up cost controls, six sources with knowledge of the matter said.

Beijing-based China International Capital Corp (CICC) is planning to reduce its investment banking headcount by at least 10% this year, two people with knowledge of the matter told Reuters.

Peer CITIC Securities is cutting around a dozen investment banking jobs in Hong Kong, according to two other sources.

The cuts would be the first major workforce reductions this year at top Chinese investment banks, and would rank among Chinese banks’ biggest layoffs since the end of the COVID pandemic, as the country’s economic slowdown, rising Sino-U.S. tensions and sluggish capital markets have dampened dealmaking.

JPMorgan Chase & Co, meanwhile, laid off at least six bankers in Hong Kong this week, the latest Wall Street bank to reduce its workforce there, another two sources with knowledge of the matter said.

All of the sources declined to be named as they were not authorized to speak to the media, reports CNBC.

CICC and JPMorgan declined to comment on the job cuts. Citic Securities’ offshore platform CLSA did not immediately respond to Reuters query.

Early in 2024, Bank of America, Morgan Stanley and HSBC cut dozens of investment banking jobs in Asia Pacific.

The cuts were made as total proceeds raised via initial public offerings (IPOs) on mainland China plunged nearly 90% to $2.6 billion for the first four months of the year, the lowest since 2013, according to LSEG data.

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Also Read: A US Bank is Now Denying Customers Access to Money

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An unexpected bank now abruptly closes a branch after more than 200 have disappeared in a single state, sources report.

Customers at Patriot Bank only found out that the institute had closed when they found a note on the door, reports The-Sun.

More than 200 other banks have closed locations across Connecticut.

The Patriot Bank at 7 Old Tavern Road in Orange, Connecticut closed its doors for good on April 25.

A sign on the building’s exterior, coupled with a notice submitted to the federal Office of the Comptroller of the Currency, confirmed the closure, according to CT Insider.

The branch opened in 2018 following an acquisition of Orange-based Prime Bank.

But a hard financial year led to the inevitable closure.

In 2023, Patriot recorded a net loss of $4.2 million in its annual report, according to CT Insider.

Compared with net income of $6.2 million in 2022, the bank struggled to stay afloat.

The location in Orange existed among several banks, blocks from Chase, Citizens Bank, Webster Bank, and Wells Fargo, and across the street from a KeyBank branch, reported CT Insider.

Patriot patrons across Connecticut aren’t exactly doomed though.

The Stamford-headquartered business still has branches in Darien, Fairfield, Greenwich, Norwalk, Stamford, Westport, and Scarsdale, New York.

Patriot recorded about $831 million in deposits in Connecticut as of June 30, 2023, reported CT Insider.

It ranked number 25 among banks operating in the state by the Federal Deposit Insurance Corporation, per CT Insider.

The shutdown of the Patriot branch comes amid a greater trend of bank closures happening across Connecticut.

Despite the rise in digital banking, customers are still grappling with a lack of access to in-person banking.

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Also Read: A Massive US Bank is Now Closing Credit Cards

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