Photo: Flickr Elliot Brown
Amid already lackluster business in a shaky global economy, the eurozone crisis is drawing more woes for large European banks.Four European banking giants – UBS, Deutsche Bank, Credit Suisse and Barclays – will be shedding a combined $415 billion in risky assets on expectations of higher bank capital requirements, Bloomberg reported.
rumours from the the EU summit this past weekend in Brussels say that eurozone banks may need to raise €100-€110 billion in capital to meet new tier 1 capital requirements.
Banks are now acting quick to stock up on high quality capital and get rid of liabilities, and prepare for possible restructuring. (In other news: France says they won’t have a problem with it.) And amid such a volatile economy, some banks are looking at further downsizing as part of the process too.
More job cuts are expected at the four European banks in addition to those already announced, analysts told Bloomberg. Whereas the previous reductions in jobs were due to poor business, additional job cuts will be a response to the mounting eurozone crisis and new policies that are being implemented. And this won’t just affect Europe, the New York Post is reporting that “heads will roll” right here on Wall Street.
The four European banks will all be announcing earnings in the next 2 weeks. Here’s a breakdown of what’s gone on so far:
– UBS: 3Q earnings report out Oct. 25th, shares in U.S. down 23% YTD, 4,200 job cuts announced. (And let’s not forget about the $2.3 billion loss from the rogue trader, a 83% drop in profits is expected to be reported tomorrow)
– Deutsche Bank: 3Q earnings report out Oct. 25th, shares in U.S. down 24% YTD; 500 job cuts announced
– Barclays: 3Q earnings report out Oct. 31; shares in U.S. down 27% YTD; 3,000 job cuts announced
– Credit Suisse: 3Q earnings report out Nov. 1, shares in U.S. down 31% YTD; 2,000 job cuts announced
Still curious about all the cuts? Check out our round-up of all the job losses announced on Wall Street this year.
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