Wachovia To Cut 1/3 of Fixed Income
Firm also plans a 10% reduction in corporate and investment banking support staff.
May 13, 2008
Wachovia chief executive Ken Thompson says the bank plans to cut one-third of its fixed income staff and make a 10% reduction in corporate and investment banking support staff.
Thompson made the remarks at a conference in New York yesterday. Last month the bank said it had cut 14% of its overall markets and investment banking staff during the first quarter of this year and that another 13% would be cut during this quarter.
A Wachovia spokeswoman said that Thompson was referring to cuts over a period of time beginning with the start of 2007 and ending by the end of June.
Like other banks, Wachovia has taken significant losses on subprime mortgage securities and other credit investments. Elton Vogel, the bank’s co-head of leveraged finance, resigned in March.
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