Salomon set to end group on arbitrage

Article Abstract:

The scheduled disbanding of its formerly highly profitable US bond arbitrage group by Salomon Smith Barney follows an estimated $15 million second quarter loss by that business. The adversion to big risks now dominates the business climate at Salomon because the firm is more interested in providing financial services to private citizens compared to proprietary trading with the company's own funds. The bond arbitrage group to be disbanded has about 30 employees. Salomon will effectively withdraw from the US bond arbitrage business, which recently has become less profitable due to factors such as stable interest rates and more efficient markets.

Comment:

Disbands its bond arbitrage group due to expected $15 million second quarter losses

Organizational history, Investment Companies, Open-End Investment Funds, Salomon Smith Barney Holdings Inc.

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Downfall of a peacemaker; heir apparent's departure may signal strain at Citigroup

Article Abstract:

Citigroup co-chairmen/chief executives Sanford I. Weill and John S. Reed accepted the resignation of James Dimon from his post as president. Well-liked in the industry and on Wall Street, Dimon is said to have left with a handsome severance package and will undoubtedly get several tempting job offers. He was charged with making the merger of Citicorp and Travelers Group as smooth as possible, but signs of strain were obvious. Analysts say the turmoil and strain is not over. The company's third quarter drop in profits reportedly added to the strain.

Financial Services, Finance and Insurance, Executive changes & profiles, Officials and employees, Financial services industry, Appointments, resignations and dismissals, Abstract, Citigroup Inc., Dimon, James

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Merrill Lynch to cut 3,400 jobs in big setback for New York City

Article Abstract:

Merrill Lynch & Company announced that it will downsize approximately 3,400 jobs because of the worldwide economic crisis. The planned cuts represent slightly more than 5% of the company's labor force. Merrill Lynch is the first major financial company to implement employee downsizing as a result of the global economic crisis. Other Wall Street firms have increased their labor forces due to the bull market.

Comment:

Announced that it will downsize approximately 3,400 jobs because of the worldwide economic crisis

Securities Dealers, Investment Banking and Securities Dealing, Personnel administration, Merrill Lynch & Company Inc.

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