Bear Stearns carved up

“Michael Spencer in talks over slice of Bear Stearns equity team
”

Michael Spencer, the City’s richest man, is in advanced talks to carve out the UK equities business of Bear Stearns, the stricken American investment bank according to Times. Spencer is looking to hire a team of about 25 staff from Bear, headed by Nicolo Brandolini d’Adda, the co-head of European equities
Although Bear has agreed to be bought by JPMorgan Chase, European equity sales and trading is an area in which there is a high degree of overlap between the two US banks, meaning that the new owner is expected to retain very few of Bear’s stockbrokers. UK equities are thought to account for about one third of Bear’s European stockbroking revenues.

Numis Securities, in which Mr Spencer holds an 11 per cent stake has 180 employees, said recently that it was “determined to grow the business organically in a contracyclical fashion” and would “exploit the volatility in the market to attract staff”.

Bear Stearns employs about 140 staff trading European equities in London. JPMorgan has not yet said how many of Bear’s employees it plans to keep. The acquisition will not formally complete until June 1

Source: Times 28/04

Read More......

Summary only...

“Michael Spencer in talks over slice of Bear Stearns equity team
”

Michael Spencer, the City’s richest man, is in advanced talks to carve out the UK equities business of Bear Stearns, the stricken American investment bank according to Times. Spencer is looking to hire a team of about 25 staff from Bear, headed by Nicolo Brandolini d’Adda, the co-head of European equities
Although Bear has agreed to be bought by JPMorgan Chase, European equity sales and trading is an area in which there is a high degree of overlap between the two US banks, meaning that the new owner is expected to retain very few of Bear’s stockbrokers. UK equities are thought to account for about one third of Bear’s European stockbroking revenues.

Numis Securities, in which Mr Spencer holds an 11 per cent stake has 180 employees, said recently that it was “determined to grow the business organically in a contracyclical fashion” and would “exploit the volatility in the market to attract staff”.

Bear Stearns employs about 140 staff trading European equities in London. JPMorgan has not yet said how many of Bear’s employees it plans to keep. The acquisition will not formally complete until June 1

Source: Times 28/04

Read More......

Summary only...

Overcoming Layoffs

“Bear Stearns expects to take $1.2bn in write-downs, and is set to layoff 650 to cut costs due to the sub-prime crisis”

Bear Stearns reported today in e-financials 29 Nov 2007, it expects to cut (4% of its global workforce) to reduce costs. 20 job losses in London. Chief Executive James Cayne announced ... “As we indicated at the end of last month, we are continuing to rationalise our business, monitor staffing needs and align our infrastructure with current market conditions,” Bear said. It said that it will make strategic hires in growth area

Overcoming Layoffs, how to survive

One of the most difficult tasks as a manager is making layoffs. Those involved in downsizing are often left with feelings of survivor’s guilt, wondering why their jobs were retained while star performers or rising IT executives were let go.
Other stories on this topic

Layoffs are likely to bring fear and uncertainty to those left behind, meaning you and your remaining staff. Those employees who retained their positions may be doing two jobs, working extra hours, adjusting to the new culture and feeling badly for those who didn’t survive the organizational change ...

“While much emphasis is put on the pain of those who lose their jobs, those remaining experience a wave of emotions,” says Julie McClatchey of Employee & Family Resources (EFR), a company that administers employee assistance programs. “It’s typical to feel both relief and guilt.”

Here are some tips to help you navigate workplace change and help your employees:

* Stay connected. Talk to family, friends and co-workers. Seek professional counseling if needed.

* Practice healthy coping behaviors. Overeating, oversleeping and excessive use of alcohol only provide temporary release, not solutions. Instead try to maintain your usual routine, exercise and get enough sleep.

* Recognize change is inevitable and view it as an opportunity to learn new skills or adapt your career.

* Give the reorganized workplace a chance, but prepare to leave if the new situation isn’t working and the company’s outlook doesn’t improve. And of course, keep your resume updated and network for opportunities.

Read More......

Summary only...

Goldman Sachs pay exceeds Bear Stearns market cap

“Goldman Sachs has earmarked $16.9bn (€11.5bn) for compensation and benefits for the first nine months of this year”

If its employees pooled all their pay they would be able to buy struggling rival investment bank Bear Stearns with money to spare. The stock market values Bear Stearns at about $14.7bn, so Goldman bankers and other workers would be able to buy the bank led by Jimmy Cayne with more than $2bn left over, according to Bloomberg.

Goldman was the best-performing investment bank in the third quarter when it reported a 79% surge in net profits, while most of its rivals suffered lower or non-existent profits. This enabled the bank to raise compensation for the third quarter by 68%, compared to the same period a year ago, to $5.9bn.

Compensation and benefits expenses were increased by 21% for the first nine months of the year, from $14bn at the same stage in 2006.

Compensation at Bear Stearns for the nine months of the year was $3.1bn, down 5.9% on a year earlier.

Goldman employed 29,905 people at the end of August, while Bear Stearns had almost half that number, with 15,516 workers. Based on those figures, the average compensation of a Goldman employee this year stands at about $565,000, compared to about average pay of about $200,000 at Bear Stearns.

Source: Financial News Online . Dominic Elliott

Read More......

Summary only...