JPMorgan to Layoff Employees in Fixed Income Units, Person Says
By Elizabeth Hester
Oct. 11 (Bloomberg) -- JPMorgan Chase & Co., the third- largest U.S. bank, is eliminating as much as 10 percent of the jobs in groups that financed leveraged buyouts and packaged debt into securities, a person familiar with the situation said.
The two units are part of the New York-based firm's investment banking division, which employed 25,356 people as of June 30, according to the company's quarterly report.
``We are making modest staff reductions in areas where we expect lower volumes going forward, including leveraged finance and structured credit,'' spokesman Brian Marchiony said.
JPMorgan is following UBS AG and Credit Suisse Group, Switzerland's two largest banks, which said this month they would eliminate 1,820 jobs after a global credit market contraction led investors to shun high-risk, high-yield debt. Analysts at Sanford C. Bernstein estimated in an Oct. 5 report that JPMorgan, led by Chief Executive Officer Jamie Dimon, may have to write down leveraged loan and mortgage-related holdings by about $2 billion.
``The boom times are over and they're taking actions to get out in front of the numbers,'' said John Challenger, chief executive officer of Chicago job placement firm Challenger Gray & Christmas. ``Jamie Dimon doesn't defer his actions and he's quick to make changes when results aren't there.''
In the first nine months of the year, JPMorgan was the third-largest underwriter of structured debt such as asset-backed securities, collateralized debt obligations and residential and commercial mortgage bonds, according to Asset-Backed Alert.
Credit Suisse, UBS
The bank sold $134 billion of the debt, about $1 billion less than New York-based Citigroup Inc. and within $400 million of Frankfurt-based Deutsche Bank AG, the industry newsletter said.
Credit Suisse said Oct. 2 it would cut about 170 jobs in its investment banking unit, about half in fixed-income. Earlier, the firm eliminated 150 positions from its mortgage-backed securities department.
UBS is shedding 1,500 jobs after a third-quarter loss, including about 70 U.S. employees who work with mortgage-backed, asset-backed and collateralized debt obligations.
JPMorgan shares fell 25 cents to $46.66 today in New York Stock Exchange composite trading. They're down 3.4 percent this year. The firm is slated to report quarterly earnings Oct. 17.
To contact the reporter on this story: Elizabeth Hester in New York at ehester@bloomberg.net .
Last Updated: October 11, 2007 17:30 EDT
Find thousands of Bilingual jobs at LatPro.com.
Oct. 11 (Bloomberg) -- JPMorgan Chase & Co., the third- largest U.S. bank, is eliminating as much as 10 percent of the jobs in groups that financed leveraged buyouts and packaged debt into securities, a person familiar with the situation said.
The two units are part of the New York-based firm's investment banking division, which employed 25,356 people as of June 30, according to the company's quarterly report.
``We are making modest staff reductions in areas where we expect lower volumes going forward, including leveraged finance and structured credit,'' spokesman Brian Marchiony said.
JPMorgan is following UBS AG and Credit Suisse Group, Switzerland's two largest banks, which said this month they would eliminate 1,820 jobs after a global credit market contraction led investors to shun high-risk, high-yield debt. Analysts at Sanford C. Bernstein estimated in an Oct. 5 report that JPMorgan, led by Chief Executive Officer Jamie Dimon, may have to write down leveraged loan and mortgage-related holdings by about $2 billion.
``The boom times are over and they're taking actions to get out in front of the numbers,'' said John Challenger, chief executive officer of Chicago job placement firm Challenger Gray & Christmas. ``Jamie Dimon doesn't defer his actions and he's quick to make changes when results aren't there.''
In the first nine months of the year, JPMorgan was the third-largest underwriter of structured debt such as asset-backed securities, collateralized debt obligations and residential and commercial mortgage bonds, according to Asset-Backed Alert.
Credit Suisse, UBS
The bank sold $134 billion of the debt, about $1 billion less than New York-based Citigroup Inc. and within $400 million of Frankfurt-based Deutsche Bank AG, the industry newsletter said.
Credit Suisse said Oct. 2 it would cut about 170 jobs in its investment banking unit, about half in fixed-income. Earlier, the firm eliminated 150 positions from its mortgage-backed securities department.
UBS is shedding 1,500 jobs after a third-quarter loss, including about 70 U.S. employees who work with mortgage-backed, asset-backed and collateralized debt obligations.
JPMorgan shares fell 25 cents to $46.66 today in New York Stock Exchange composite trading. They're down 3.4 percent this year. The firm is slated to report quarterly earnings Oct. 17.
To contact the reporter on this story: Elizabeth Hester in New York at ehester@bloomberg.net .
Last Updated: October 11, 2007 17:30 EDT
Find thousands of Bilingual jobs at LatPro.com.
Labels: Credit Suisse, JPMorganChase, layoffs, UBS
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