Monday, July 2, 2012

'Near-shoring' moves bank jobs from New York to RTP

Welcome to the morning roundup. Here's a look at what's news in banking and finance this morning.

'Near-shoring' moves jobs. Big banks are increasingly moving mid-level jobs from centers like New York City and London to lower-cost locations, including RTP in North CarolinaThe New York Times reports. Known as "near-shoring," the practice targets jobs that need to stay in the U.S. but don't necessarily need to be in the big cities, like accounting, human resources and legal support. Low-level jobs have already moved overseas.

Living wills due today. The "living wills" the country's largest banks are required to submit outlining how they could be broken apart if necessary are due today to the FDIC. A version of the reports for the nine largest banks -- including Bank of America -- will be made public tomorrow, Bloomberg says. The wills are required under Dodd-Frank, and a total of 125 banks will have to submit them by the end of 2013.

Barclays chairman resigns. Barclays chairman Marcus Agius announced his resignation this morning in the wake of the Libor-fixing settlement that cost the British bank $450 million, CNN reports. The bank's CEO, Bob Diamond, is also under pressure to resign, and the pair will face questions from parliament this week.

Can women save banks? Former Bank of America Merrill Lynch head Sallie Krawcheck has a new op-ed, this time touting women's skills in interpersonal relationships, risk-averse nature and long-term goal setting and how these qualities could serve the banking industry. She writes that a true conversation on diversity hasn't taken place in finance.

States changing foreclosure rules. Bills are pending in half of U.S. states to change the rules for how foreclosures can proceed, the Wall Street Journal reports, as a reaction to the practices exposed in the $25 billion national mortgage servicing settlement. One bill, in New York, would make it a crime to forge foreclosure paperwork.

Chinese banks most profitable. China's banks accounted for a third of global banking profit in 2011, CNBC reports, and three of the country's banks were the world's most profitable, according to rankings from The Banker magazine. JPMorgan chase was the most profitable U.S. bank and came in fourth. Bank of America came in first in The Banker's ranking of banks most able to lend on a large scale.

Malaysia boom. Bank of America, Goldman Sachs and JPMorgan Chase are among the banks cashing in on the boom in investment banking activity in Malaysia, Reuters reports. The country's share of Asian mergers and acquisition activity has doubled this year.


John said...

You apparently assume that every reader already knows what "RTP" stands for.

Very poor.

Anonymous said...


If you have lived in NC for more than 2 seconds and read the observer, you already know what RTP stands for... go troll on some other article and comment there.

and NC stands for North Carolina in case you didn't know. . . .

Anonymous said...

John, I've made the reference to RTP a link in case anyone gets confused.