Lehman Layoffs, Citi Cost Cutting
Submitted by
CalculatedRisk on Thu, 08/28/2008 - 10:03am (114 comments)
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Noooooo! not the blackberries!
electronic documents are the future. they need to phase out paper altogether.
well, as much as they can, anyways.
I don't think restricting color copies is a big deal; if they start limiting bathroom usage to number 1 only, then it's probably time to start panicking.
The only thing we have to fear is fear itself.
The real indicator is when they cut the vending machine contracts -- location closing within the month.
They can have my Crackberry when they pry it from my laid off fing..@#%$&24#%..[carrier lost]
REVIEWING Blackberry usage?
That's unconstitutional!
I clearly remember Life, Liberty and the Pursuit of mobile apps.
Please, they're hemorrhaging billions and cutting 1000 jobs? Dick Fuld ought to have his head on a pole by now. He has less than zero credibility...he can't even pawn Lehman's silver right now.
Within the next quarter, they won't be as they are right now. They will either be taken over, or...they'll be what BSC should have been.
Have they cut the dividend yet?
Or do they think that there is still blood left in this turnip?
Y'day's news... today I heard they're cutting out lunch on the trading desks. NOW, that's got people pissed off!
ipodius--
seems like it's been awhile since we've heard from you. Or have I been reading the wrong threads?
Banking problem? What problem?
Banking crisis? What crisis? David Weidner's Writing on the Wall - MarketWatch
Beyond the pale
While I like the double sided bit from an enviornmental standpoint, if that is what's between a financial giant and oblivion, well you've already lost.
Nah, they are goign through the Wall Street boom and bust cycle, as they ever do.
The only problem is the young folks didn't signon with the understanding they were expendable in employment if things went belly up.
Well, welcome to wall street, you have to take one for the team, unless you make much more for the team than you get paid.
Wall street and finance are probably going to be halved in terms of employment from the peak, maybe even only 40% of peak employment.
Just not enough profitable ways to shovel money around in this environment.
Someday this war's gonna end...
At Nokia, in early 1990s, they even rationed pencils.
A company with over 2 trillion in liabilities and the best management can come up with is no color copiers. Ugh! Maybe management is trying to get fired so they can get a golden parachute while there is still some money left to be had.
I learned on my first job that cutting back on office supplies means the Death Kitten is coming.
CNN.com - Page not found
Instead of worrying about color copiers, perhaps Citi should close some of the kajillion completely-empty branches it just opened in New England.
I heard they're also requiring the Arial Narrow font at 9pt.
Back in my day when I was an IB'er on the Street, when things got tight, it was car services we got beat up about.
But I must say, color copies reeks of desperation.
"Citi will be conducting a review of BlackBerry usage."
Heard that kind of crap during to 80's oil bust where I worked. "If it's nice, it's not necessary!"
I guess Citi's tired of seeing red ink.
In which quarter will see a bump in earnings caused by less copier use?
When they start selling of branches"
I could take a Citi Branche, turn it into a Longbranche and get Lefty to supply the firewater...
The world is going to need lots and lots more firewater.
I guess Citi's tired of seeing red ink.
LOL! That's one way to take care of the financial statements: don't allow the color red to be used.
Kinda packistani in its simplicity.
2 sided copies, ugh.
When you need copies of those half the time the back side doesn't get copied, or it's a pain for someone who copies your copies to get it all collated right.
This kind of belt tightening is both ineffective and stupid, but what can I say, just more of the same.
When they switch from Starbucks to Folgers, that's when it's time to start sending out the old resume.
What brilliant management, since these measures are confirmed Citi policy.
Excuse me - they are staring at billions of dollars of writedowns/losses, and what matters is the color printing?
I will hazard the guess that the amount of money to be saved is less than the helicopter service used to shuttle the management members that made those decisions leading to billions of dollars of losses.
But while color is costly, time of management is too precious to waste - after all, blackberry use is being cut back too.
I know a guy who shorted Meade and Xerox in 71 when IBM announced the coming of the paperless society.
Did not work out well.
Double-sided TPS reports?
Madness!
Frame writes:
Double-sided TPS reports?
Madness!
Frame | 08.28.08 - 3:07 pm | #
And they are confiscating all the Swinglines - we know how THAT ended... maybe they got good insurance.
TP recycling is the absolute last straw IMHO....
.................
I'm glad that they are so close to being profitable that the color copy expenses matter!
Color copiers on the cheap on NY craigslist?
They'll save their future by making a killing having already hedged short RIMM.
it means nothing. you hear these reports including ones about empty malls, companies going out of business, restaurants being half full yet the GDP number came in very healthy and look nothing like recessionary numbers. i guess all that negative news means nothing.
Instead of just cutting costs, I think that Citi should require employees to bring baked items to work every Friday for huge bake sales with the proceeds to go toward paying the dividend.
Somebody help Richard find his medication.
I think LEH didnt get this memo from Martin Regalia, vice president for economic policy at the U.S. Chamber of Commerce.
The U.S. economy will likely slip into a recession by the end of the year, but the woes in the housing market are close to bottoming out, the top economist for a leading U.S. business group said on Thursday.
"I see possibly a recession by the end of the year, but it will be a relatively short recession and a relatively mild recession,"
He also said the government's economic stimulus package helped head off a recession during the second and third quarters of this year, but that a second such package would not be worthwhile.
The Fed now has a cheap source of color copiers for its money printing. Well, except it'll cost more to print a sheet of 20's than they're worth. D'oh!
So that is what a HarrrVard MBA gets you...cut back on copies...SAD!
Maybe the fed stopped taking color toner at the window??
Go short Xerox!
How about limiting the number or squares you use in the toilet.
John Stark...ugh, I've been a busy boy, so I'm been reading but silent! We've been busy as hell. Some areas in tech are booming as much as manufacturing. All I can say is I'm glad I'm not in Financial Services anymore
I'd hate to be Dick Fuld right now, knowing that everyone is outside my door sharpening their knives...
BTW someone at the top will get a huge bonus if this cost cutting is successful. Superior leadership in the face of adversity!
Even better news.
Military help for Georgia is a 'declaration of war', says Moscow in extraordinary warning to the West
Russia successfully tests ICBM designed to beat anti-missile systems
If Citi does need to cut costs, may I suggest stopping the expense of quarterly 10K reports.
The auction value of the fixed assets is the only value left in both of these companies.
Time to up the insurance and then burn it down.
So that is what a HarrrVard MBA gets you...cut back on copies...SAD!
Yeah, well, you don't want to cut back on those black cars, or the hotel rooms for the executive's wives (I have a ton of stories from a certain large firm with huge government contracts here that begins with an R in MA about the CEO's bitchy wife and her travel extravagances what would cause massive PR problems...how she threatens to have people fired when she doesn't get her suite at the Ritz...), or the expense reimbursements, or the admins (making people do their own dirty work). No you want to cut back on color copies.
You can only get that kind of education at that place in Cambridge for sure.
I bet they have a whole bunch of goodwill value.
Funny oil goes down on news of a SPR release. I'm buying oil today for tomorrows strong rally...
I bet Sheila Bair can help Citi and Lehman be profitable again.
She can do anything!
Don't worry we can always flood the market with our emergency reserves! Then what... good scalp trade IMO
U.S. Moves Step Closer To Universal Accounting - NY Times
Is the US changing to international accounting practices good or bad?
I'm buying caffeine for a long night watching the DNC and then going out for karoake and an all night rave with the Olsen Twins. I will try to convince Ashley that investing her money in newly built Big Box retail centers is an unwise choice. Maty Kate never listens to me, so I won't even try.
Super Idiot writes:
I bet Sheila Bair can help Citi and Lehman be profitable again.
She can do anything!
the hell are you talking about didn't you hear its one topping pizzas on the weekend only?
Mary Kate, for those paying attention. (She's the cute one.)
Sebastian? Is Richard your first or last name?
Russia successfully tests ICBM designed to beat anti-missile systems
Sbarrkum - What did they do, test a missile? Because ANY missile the Russians had before could beat 'the missile shield' now as has been shown by our own testing. Hell we can't even hit test missiles that tell the 'sheild' where they are.
Jesus I hope we make it to January...
"I'm buying oil today for tomorrows strong rally..."
Knock youself out, I think I'll stand here by the door.
Knock youself out, I think I'll stand here by the door.
Leave your name so you can talk to you tomorrow
If they really wanted to cut costs, they could focus on the areas that really make a difference: travel, field offices, teleworkers, and senior management compensation.
A prior employer of mine who went through a very serious crisis started out with the fishing-change-out-from-under-couch-cushion measures like cutting down on copies; but in the end, they had to slash staff, close many of the field offices (not much of a loss, as many of them turned out to be expensive outfits with highly underutilized, underqualified staff), cut teleworkers (ditto on underutilized and underqualified, with some exceptions), and steep cuts in travel, both number of authorized trips and per diem rates (and enforcement of cheapest airline and hotel, etc.)
Senior staff compensation is a bit easier and less painful: you just fire all the old senior management and hire new ones at lower rates. Works like a charm, doesn't affect business by all that much.
Even Citibank's website is going double sided and black & white!
Given the evolving state of the marketplace, the upcoming Presidential election, and impending regulatory changes, it is more critical than ever for you to attend this years SIFMA Annual Meeting.
Leading industry experts will provide key strategic insights on the topics that matter most to our industry. The following topics will be discussed at the Annual Meeting:
SIFMA Annual Meeting | 2008 SIFMA Events
Featured Speakers:
\t
Henry M. Paulson
U.S. Treasury Secretary
Lawrence Summers
Former United States Treasury Secretary and Harvard President
Analysis of the 2008 Presidential candidates and the potential impact of their platforms on the economy
Hope the military is better organized than the bankers or we are in trouble.
Bullish ?
BOOOOYAAAAAAAAAAA!
Jesus I hope we make it to January...
dryfly | 08.28.08 - 3:47 pm | #
Yes but it's January 20st we need to make to.
jo6pac
The race to the bottom continues
CR don't forget to take some winter gear. Have Fun.
GDP number came looking nothing like recessionary numbers"
yeah..."look like"
something that "looks like" isn't even data
someone in a lab where I used to work said once "I think the data is better than it looks", that was optimism
But when you know the data looks better than it is, then you have a few problems...
whatever, the market loves it! and its the arbitrer.
I have lost money twice shorting RIMM. Will the third time be a charm?
the cuts will continue until you wake up america
5 minutes of firecracker speaking by denise kucinich who should have joined forces with ron paul IMHO
YouTube -
FDIC is going to singlehandedly prop up the CRE market:
FDIC Adds Office Space in Dallas, Ready for More Bank Failures - Bloomberg.com
DELL just laid a major EGG! The business customer is dead!
Dell shares down 11% AH...bubblevision said they were going to blow out numbers...
But I thought blackberrys were supposed to make them more productive. You mean it's not worth it?
i admit it kucinich is unashamefully
left of center and i dont agree with all his ideas but he has some good points
when ron paul speaks at the Republican convention i'll post his speach as well...he is also a true believer.
Prior to Blackberry's arrival on the business scene I didn't think it was possible to shorten the attention span of your average nimrod executive any further.
Boy was I wrong.
I think the data is better than it looks.
A similar quote that I like is:
I've been told by experts that Wagner's music is better than it sounds. -- Mark Twai
Yeah, this is usually the step before the big one, the one where you get fired. Been there, been fired. By now everyone's resume is on the street. Poor bastards.
Don't fell sorry for anyone but the back office.
But since everyone reads Calculated Risk they all knew this was coming.
fell = feel
awgee writes:
I have lost money twice shorting RIMM. Will the third time be a charm?
humm RIMM short looks good here, short term at least so far (day close on higher volume below 127.4)
all time frames "consistent" with short candidate, but a bit early on the head and shoulder (weekly)
"Military help for Georgia is a 'declaration of war', says Moscow in extraordinary warning to the West"
That this situation could lead to military confrontation between Russia and the West is absolutely inconceivable. How could nations be so stupid and irresponsible as to be drawn into a terrible conflict that nobody wants?
Anybody? Ask the men of 1914.
Superficially, these questions are completely off-topic for this venue.
During much of the 80s I watched the world stagger along at the edge of the abyss. Although I'm completely unimportant myself, I've spoken with people who had, at the time, real operational power.
The past week has left my guts in an uproar. I'm an old man, but I find the present situation terrifying.
Bizarro writes:
whatever, the market loves it! and its the arbitrer
I would not say it is the arbiter,
who cares what IS actually behind the moves, I just trade what I see, it is all good, no need to assume any risk overnight, there are enough shenanigans to trade safely intra day
Privet Pav,
What was it once said? The Ukranians fight the Poles and Russians. The Poles fight the Ukrainians and Russians but all of them fight the Turk.
Russian problems are in the south. They won't beard the western lion.
Just my opinio
Citi also decided to cut out their $45 million Japanese Garden which was to grace their executive floors. Paid for by the blood, sweat and tears of American mortgage slaves and the suckers who took on RMBS black holes.
Page not found - - CNBC.com
The king of the slavs will come to our defense against the British imperialists
Oh, a I find that bake sale idea from the humourist Elvis entertaining.
CathyG writes:
Citi also decided to cut out their $45 million Japanese Garden which was to grace their executive floors.
What a shame - can't think of a better place for their senior management to perform the honor ritual. Well I guess there are still windows...
The FDIC will have less bankers to interview after it fails.
Genevievie - Thanks, the fundamentals look bad enough and I am just waiting for the technicals to determine my exit, (entry).
That this situation could lead to military confrontation between Russia and the West is absolutely inconceivable.
I do not think that word means what you think it means.
dont take my CrackBerry. Oh pleaseeee
Rumour has it the Tan Man is in discussions w/ Shelia for a non-exec slot to launch an improved HopeNow program.
you have to take one for the team, unless you make much more for the team than you get paid.
Or manage the team.
It's all about the pipline dudes. The Ruskies controlled all the oil pipelines to Europe until BP put the one in Georgia. That's what the next war will be over, and then it will really be over.
In: Dixon no. 2
Out: Crayola Big Box
Maybe the quality of their work will improve.
"Russian problems are in the south."
Privyet, Ross.
So was Serbia in 1914.
For this situation to proceed to another, more hostile stage would be irrational. Sometimes that is an obstacle which stops the process, and sometimes it does not.
Each side is now accusing the other of madness and irrationality. Is that supposed to reassure anyone?
Rob,
How have I misconstrued the meaning of 'inconceivable'?
Ross,
There is and always has been an issue involving when and how events and systems may assume control over rational operators.
I am not too worried about Russia. They spend all their money on foreign sports teams, Jack Daniels, Range Rovers, Mercedes, Prada, etc.
They need the Georgian pipeline to keep their spending habits alive.
Why would they bomb the car factories they depend on? Why would they bomb the soccer stadium they just bought? Give me a break.
Mr. Chichikov,
For what it's worth, I share your concern. I am a young american, but old enough to remember 1989.
Pavel,
Rob quote refers to a scene from the film, "The Princess Bride" based on the wonderful book by William Goldman.
Inconceivable
Aw heck, they ought to just lay off a couple of the jerks that pushed the MBS crap, make examples of them. That ought to be enough to cover all the expenses they are cutting here.
"I am not too worried about Russia. They spend all their money on foreign sports teams, Jack Daniels, Range Rovers, Mercedes, Prada, etc."
Interesting. I heard a 'commentator' on the Lehrer News Hour quote someone to the effect that it is so sad that all the Russian men of power really want is to be admitted to posh nightclubs and resorts.
A cheap film and paperback Russia.
The only one here who may have an idea of how Russians think is Ross.
"I am a young american, but old enough to remember 1989."
1989 - 1991. The Soviet empire might have taken the whole world down with it. You probably have no idea of what extreme plans and possibilities were being considered.
Pavel, in the end, everyone wants to go home and have a bed to lie down in.
Empires are a waste of time, and we need to shed ours pronto.
The sooner Putin wakes up and make Russia into a nice powerful western style country, the better for the people.
They have the resources, and everyone else is going to send immense amounts of treasure to pay for it.
Now, just keep the common folks happier and they won't drink so much and maybe have lots of babies.
We should have sent huge shipments of western goods, envy would have started the next revolution.
Someday this war's gonna end...
>
You're behind the times on this one. There have been multiple successful intercepts now. Please go to The Missile Defense Agency - U.S. Department of Defense and read the news releases. The last hit-to-kill was hands-off acquisition and intercept, on 25 June.
These are complex systems, and engineering requires progressively testing out components before moving to using others. You never start off testing the entire system at once, or you will lose opportunity to scrub each element independently. It is understandable that many people don't appreciate this fact, and it is unfortunate that many who should know better point to any 'failure' as indicative of ultimate failure. People forget how many losses were incurred when developing rockets for the space program. If those attempts had been stopped from the start, we would not have gone to the moon, much less have satellites orbiting earth providing you with TV, communications, weather data for predicting your weather, etc.
As far as the Russian system in question, the original SS25 has been around since before the cold war ended, it was for penetrating hard targets with high accuracy. Frankly I like the idea of being able to take one out if someone lobs one at us. But that's just me.
he only one here who may have an idea of how Russians think is Ross.
"I am a young american, but old enough to remember 1989."
1989 - 1991. The Soviet empire might have taken the whole world down with it. You probably have no idea of what extreme plans and possibilities were being considered.
Pavel Chichikov | 08.28.08 - 6:29 pm | #
Exactly.
Bushco & McCrazy dicking around in the Caucuses... what could possibly go wrong with that?
PC - thanks for your input.
Frankly I like the idea of being able to take one out if someone lobs one at us. But that's just me.
RichW | Homepage | 08.28.08 - 7:29 pm | #
Me too - I like the idea of being able to take one out also... better yet take out 50 or a 100 missiles launched simultaneously & MIRVed to the teeth. I also like the idea of there being a Santa Claus but it doesn't mean I believe in him.
Isn't going to happen in our lifetime no matter how bad neocons want it to happen.
The Poles & other ex-bloc NATO entrants would be better off placing bibles out in defense right now than missile defense. Maybe God might save them.
This gamesmanship is pure nonsense. January can't come soon enough.
"As far as the Russian system in question, the original SS25 has been around since before the cold war ended, it was for penetrating hard targets with high accuracy."
There was some question toward the end of 1991 about the firmness of the command and control system of the SS-25. A nuclear power falling apart socially and politically is not a pleasant thought.
RichW., don't you think it would be much more preferable not to have to prove these systems in real world circumstances? The real world is not a neat demonstration.
If the FEDS can print money why can not Citigroup? We need those color printers, damed!!
Pavel re missile: >
Yes, one hopes to never have to use them. Reminder to readers that these are not defenses against massive attacks, but against small numbers. These are not offensive weapons, so this is not the MAD philosophy. These are to hopefully prevent the possessor of small numbers of these from using them.
To dryfly: Having such a defense is no prerequisite to the neocons savaging the world with reckless foreign policy, neither can it arguably embolden them further. It's to save the population at home from the consequences of foolishness far away, no matter who started it.
Naturally the best defense is the 'hope that the Russians love their children, too' (Sting). But while we take down our missiles, the Chinese, Russians, Koreans, Pakistanis, Indians, and others are putting more up. Do we assume these will never, ever, be launched at someone? It seems foolish to follow the Neville Chamberlin defense of detachment and appeasement. There will be times again, unfortunately, when the US will need to go to war. (Though I am of the opinion that Iraq was not one of them, though most were not wanting to hear that back then.) It is possible someone will launch missiles at us in anger for our getting involved abroad, and having no defense at home will leave us too vulnerable.
JMHO and thanks for the polite conversation.
It seems foolish to follow the Neville Chamberlin defense of detachment and appeasement.
It isn't Chamberlain we're following it's André Maginot
...
Nice idea but unfortunately just wishful thinking.
"Yes, one hopes to never have to use them. Reminder to readers that these are not defenses against massive attacks, but against small numbers."
We don't know if they are actually defenses, and if they are under what circumstances. There is more practical experience in warfare with the crossbow than with anti-missile weapons.
My personal view, for whatever it's worth, is that the first time anyone launches a nuclear armed missile there is likely to be a global cascade of further launches, whether the first one is intercepted or not. I think we have to assume it.
Whatever, happens, reliable communications between nuclear-armed parties must never be broken and never distorted. All sides must understand the intentions of the others. Even so, there are other possibilities for disaster. I'm sure everyone who thinks seriously about these problems is aware of them.
At all times and in all circumstances tensions must be reduced, not elevated, and this is the responsibility of every party, not just one or some.
Mr. Putin has made his country into a western country. Ultra capitalistic, militarily aggressive - look at it America and behold your own image.
The hope of the world is in the fact that Mr. Putin is so much smarter than Bush and his cohorts.
"That this situation could lead to military confrontation between Russia and the West is absolutely inconceivable"
Agree, Pavel. And yet, UK seem to be doing everything possible to ensure that it does. Don't they have enough problems at home?? Oh, everyone, look the other way! Russia is about to invade the Falklands/cut across the North Pole/strangle Ukraine & co in a massive gas blocade!
Bring on the election now, you stupid labour idiots!!!