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Reuters – DE Shaw & Co, one of the world’s largest hedge fund managers, fired about 25 administrative and support staff on Tuesday and reassigned other employees in an effort to boost efficiency, people familiar with the situation said.
The job cuts represent a small portion of the New York-based firm’s 1,700 employees and do not affect the "front office," according to the sources, who were not authorized to speak on personnel matters by closely held Shaw.
Business week – The idea certainly seemed all right to throngs of Americans who were outraged by news that American International Group (AIG) paid out millions of dollars in executive bonuses after it was rescued with taxpayer cash.
But would no bailout be even worse? Financial analysts and federal officials have warned that doing nothing to save AIG—or banks or the auto industry—would be a catastrophe, an economic domino effect of bank losses, stock market chaos, and job cuts. No one—at least no one in the government—has the stomach for that.
Bloomberg – Aozora Bank Ltd., the Japanese lender controlled by U.S. buyout fund Cerberus Capital Management LP, said first-quarter profit fell 75 percent as fees declined and returns on investments in hedge funds withered.
Net income dropped to 9.33 billion yen ($86.6 million) in the three months ended June 30 from 37 billion yen a year earlier, Aozora said in a statement today. The Tokyo-based bank left unchanged its full-year profit forecast of 44 billion yen.
Aozora’s stock slumped 18 percent during the quarter, the biggest decline of any Japanese bank, after a parent operating loss of 25 billion yen in the year ended March 31. Chief Executive Officer Federico Sacasa and other executives took pay cuts after annual profit plunged 93 percent, the bank said last month.
