threats

Jenkins, 52, is trying to revive profitability at the securities unit, the biggest source of income for the London-based firm, while wrestling with demands for higher pay from its bankers. He has fallen behind on targets he set as CEO and faces calls to outline a clear plan as he prepares to meet shareholders at the annual meeting next month…His efforts to revive profit have been hampered as revenue from trading bonds, currencies and commodities dwindles across the industry and regulators press Britain’s second-largest bank to increase capital or shrink assets to meet limits on leverage. Barclays’s full-year adjusted profit excluding one-time items as well as gains or losses on the value of the lender’s debt fell 32 percent to 5.2 billion pounds. The firm raised about 5.8 billion pounds in a rights offering in October. “There’s a feeling he has lost control of the business,” Christopher Wheeler, an analyst at Mediobanca SpA (MB) in London who last week cut Barclays to neutral from outperform, wrote in a March 24 note to clients. “The threat of an uncomfortable annual general meeting is becoming very real.” [Bloomberg]

You wanna play hardball? James Dimon is game. Read more »

  • 13 Feb 2012 at 8:03 PM

Moody’s Treads Where No Other Rating Agency Dare

“Moody’s Investors Service downgraded six European nations and became the first ratings firm to warn the U.K.’s rating could be at risk, citing the area’s weakening ability to implement measures aimed at reducing debt…Where Moody’s did deviate from recent actions by other ratings firms was in changing the outlook for the U.K. There had been no indication the U.K.’s outlook was necessarily in danger based on how other ratings firms view U.K.’s debt. Both S&P and Fitch have a stable outlook on their U.K. rating.” [WSJ]

  • 06 Feb 2012 at 2:49 PM

How Much Do You Bench? Your Job Might Depend On It

Several weeks back, Barclays CEO Bob Diamond said in an interview that his firm received “applications from 107,000 kids at university, of which we had positions for 1,500.” Diamond threw out the numbers to show that, despite profits not being what they used to, people still want to work on Wall Street. And, more to the point, that those currently employed in the financial services industry who’ve threatened to quit in the last month over bonuses that did not meet their expectations can and will be easily replaced. But perhaps the line didn’t work on you? Perhaps you shrugged off the “threat” of a bunch of faceless 21 year-olds with zero skills taking your job? While you may have been right to not quake in your boots over the vast majority of Diamond’s li’l worker bees, you might want to worry a little bit about one aspiring young junior mistmaker in particular. Read more »

Several executives and other employees in Jefferies Group Inc.’s prime-brokerage unit threatened to leave the firm in a dispute over issues including a recent restructuring and year-end compensation, people familiar with the matter said. The dispute led to a series of meetings Tuesday involving Jefferies executives and its global head of prime brokerage, Glen Dailey, the people said. Mr. Dailey, in response to questions from The Wall Street Journal, acknowledged the discussions but said no one was leaving, adding, “family affairs are now in order.” [WSJ, earlier, earlier]

Asked if he’d threatened to leave MF Global if the board did not trust his judgment on the European trade, Mr. Corzine said no. But he conceded he had “one specific conversation with a lead director which could have been interpreted that way.” [WSJ]

The ultra-rich bankers, hedge fund managers and private equity executives of New York City have long enlisted private security firms to help safeguard them and their wealth. But as the mood on Main Street turns increasingly hostile, New York’s financial titans are cranking their security measures up to 11…One executive contacted Insite requesting help planning his escape from the United States in the event the federal government was overthrown, said Howard A. Shapiro, Insite’s chief technology officer. The executive wanted to know how much gold to keep on hand and how to escape the United States by submarine in the event of a major incident. [NYT via BI, related]