Elana Margulies

20/07/2011 Author: Elana Margulies

Prime brokers rethink business plans for 2011

Performance has lagged behind the high hopes of the start of the year. This has created worried managers, but also a series of puzzled service providers who now have to take a long look at annual business plans written at the end of 2010, when growth seemed guaranteed.  

In anticipation of the summer slowdown, a number of prime brokers are already re-evaluating their businesses, including the possibility of staff cuts, as they deploy a number of cost-cutting measures.  

According to sources familiar with the prime brokerage sector, BNP Paribas and Credit Suisse are the latest among a number of global investment banks to make layoffs.

French bank BNP Paribas, operator of an over 300-strong global prime brokerage group, has reportedly let go of a few people in its client services divisions, with Credit Suisse Prime Services also making minor cuts.

Sources close to the prime brokerage sector said many businesses are reviewing people who aren’t top-performing revenue generators, after failing to generate the business they anticipated in the first half of the year. Accordingly, they had to reduce their expenses to meet their budgets in the third quarter.

Not all of the global banks’ prime brokerage divisions had to rethink their bottom-line following the first six months of 2011. Bank of America Merrill Lynch has been expanding its prime brokerage group after it recruited Stuart Hendel from UBS to boost its team. HFMWeek reported earlier this month that it made four new additions to its EMEA Global Markets Financing and Futures business.

Post a comment

Post a comment…

Be the first to comment on this article!

07/06/2012

UK: Impact of the AIFMD - the real story

Join us and our panel of experts for HFMWeek's Subscribers' Club June's UK breakfast briefing, 'Impact…

Read More

31/05/2012

US: Family Offices

The next US HFMWeek Subscribers' Club breakfast, will take place on Thursday May 31. Join us and…

Read More

02/02/2011

European Hedge Fund Services Awards 2012

HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...

Read More

Search HFMWeek