Gfma : News on the global financial markets

Banks rein in expectations and reduce costs in Asia
Investment banks are reducing expenses and expectations in Asia as competition increases and markets weaken. Nomura Holdings, Goldman Sachs Group, Bank of America, Citigroup and other banks have laid off employees, and bankers expect additional cuts. Meanwhile, some financial institutions are reconsidering expansion plans in the region. The Wall Street Journal(04 Jan.)

Banks face challenges in hiring and retaining talent in Asia: Banks in Asia are reining in expenses, making hiring and retaining top deal makers more challenging. "The onus to try and cut nonperforming bankers from the business is all the greater now, because it's just unsustainable with the way things are, [in terms of] the cost base versus the revenue potential," said Christian Brun, a partner at Wellesley Partners. The Wall Street Journal(04 Jan.)

• Other News

Large volumes of European CMBS debt are due this month, Fitch says
Bloomberg Businessweek (03 Jan.)

Yields climb for French and Spanish bonds
The Wall Street Journal (03 Jan.)

Citigroup sues Hong Kong hedge fund manager over gold losses
Bloomberg (03 Jan.)

Regulatory Roundup

ECB names Belgium's Praet as head of economics division
Belgian economist Peter Praet was chosen to lead the European Central Bank's economics division. Praet is the first non-German to hold the position, although he was born in Germany and speaks German. The Wall Street Journal(04 Jan.), The Washington Post/The Associated Press(03 Jan.), Bloomberg(03 Jan.)