Weekly Global News Wrap: Banks eye layoffs as pandemic costs loom; Credit Suisse applies for Spanish investment bank licence

And JPMorgan exits Brazilian private banking business.

From Reuters

Layoffs are back on the table for major banks as long-term costs of the pandemic emerge.

Compared with April projections, bank economists and executives expect the U.S. economy to take longer to recover, with high unemployment into 2021 and interest rates staying near zero for the foreseeable future.

Banks have to cut costs because of expected credit issues, as well as low interest rates and regulatory pressure to trim dividends, an analyst said. Bank staff could shrink by an average of 5-10%, mainly at mid- and lower levels in technology, human resources and finance departments.

From Reuters

Credit Suisse has applied for a licence to set up an investment bank hub in Madrid after Britain has left the European Union, a spokesman said.

The Swiss lender sought a licence from the Bank of Spain and the European Central Bank in July to upgrade its brokerage in the country to a bank.

The bank expects to get the licence within a year and to be fully operational by mid-2021.

From Reuters 

JPMorgan Chase has reached an agreement with Brazil’s Banco Bradesco SA to potentially transfer its private banking clients to the Brazilian lender.

JPMorgan has roughly $3.71 billion under management in its Brazilian private banking unit, a source said. Bradesco also said JPMorgan will continue to provide Brazilian clients with products and services abroad.

Under terms of the agreement, clients may opt to migrate to the Brazilian bank, with Bradesco acting to enable an organised transition, it added.