Financial Biz Review: Lloyd’s DIVESTS Branches, Deutsche Bank Cuts 1,000 JOBS
Here are Thursday’s top stories:
The Co-operative Group provisionally agrees to acquire 632 of Lloyds Banking Group’s (NYSE:LYG) branches for £750 million, which amount is less than the already-reduced rumor number as the firm needs to divest the branches to fulfill the European Commission’s state aid rules. The Co-op will pay £350 million initially, and added “earn-out” sums from completion through the year 2027, subject to performance.
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Deutsche Bank (NYSE:DB) will cut 1,000 investment-banking positions, according to a Reuters report, as a slump in capital markets activity results from the eurozone crisis. The terminations must come as a surprise, since the bank said in April that it did not foresee a need to reduce employees in the department.
Morgan Stanley (NYSE:MS) intends to eliminate an added 700 jobs by the end of 2012, in an attempt to “rightsize” the bank, says its Chief Financial Officer Ruth Porat. Already since the first of 2012, more than 3,000 positions have been cut at the company.
During a day of industry-wide job slashing, Citigroup Inc. (NYSE:C) announces that 350 positions will be eliminated from its investment banking and trading unit this year, says a source. The reductions comprise approximately 2 percent of the division’s staff and come in addition to 1,200 cuts already announced.
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