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Securitization People and Markets

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  • BNP Paribas is planning to reduce its corporate and investment-banking units by 1,400 jobs, or about 6.5% of its work force, taking aim at the capital markets and structured finance businesses.
  • Société Générale has said it will cut several hundred jobs in its corporate and investment banking unit next year to help it meet higher capital requirements.
  • The Federal Reserve Bank of New York announced that it will raise margin requirements on 21 primary dealers in mortgage-backed securities transactions.
  • Brian Moynihan, ceo of Bank of America, says the bank is developing the framework for mortgage lending market without government-sponsored enterprises.
  • The U.S. Federal Housing Administration has underestimated by tens of billions of dollars the default risk of its insured-loan portfolio, according to research by Joseph Gyourko, a real estate professor at the University of Pennsylvania’s Wharton School.
  • Roy Chun has joined Freddie Mac Multifamily as asset management senior director of surveillance from the Federal Deposit Insurance Corporation.
  • Moody’s Investors Service has placed Credit Suisse on review for a downgrade after Switzerland’s second-largest bank posted losses in investment banking and a decline in wealth management income.
  • \Josef Ackermann has announced that he has decided not to accept the chairmanship of Deutsche Bank when he retires next may as ceo.
  • UBS has named Sergio Ermotti as successor to Oswald Gruebel as ceo, effective immediately.