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UBS, Merrill Said to Ask Bankers to Fly Economy to Cut Costs
By Cathy Chan
Oct. 22 (Bloomberg) -- Merrill Lynch & Co. and UBS AG have asked senior bankers in Asia to fly economy on short-haul flights and reduce non-essential travel as falling revenues force cost cuts, bankers at the firms said.
UBS this month advised bankers to travel economy class for flights of up to five hours, two officials at the biggest Swiss bank said, asking not to be identified because it's an internal policy. Merrill employees have been asked to travel economy for flights of as much as three hours since mid-September, two executives at the firm said.
The world's largest banks and securities firms are tightening costs to survive the financial-market meltdown that toppled Lehman Brothers Holdings Inc. and forced Merrill Lynch to sell itself to Bank of America Corp. The financial-services industry has cut more than 140,000 jobs since a surge in subprime mortgage delinquencies began to roil global debt markets in 2007.
HSBC Holdings Plc's Asian unit asked all its Hong Kong department heads and branch managers to cut travel expenses by 15 percent to 20 percent next year, two officials of the bank said, citing a Sept. 23 memo sent by Chief Operating Officer Jon Addis.
HSBC is recommending lower-cost China Eastern Airlines Corp., the country's third-biggest carrier, over Hong Kong Dragon Airlines Ltd. for business trips to Shanghai, the memo said according to the people. Europe's biggest bank by market value last month cut 1,100 jobs in its global banking and markets division.
Merrill Job Cuts
Mergers and acquisitions worldwide fell 30 percent to $2.43 trillion this year from the same period in 2007, according to data compiled by Bloomberg. Global equity offerings fared even worse, slumping by half to $292 billion.
UBS was forced into a $59.2 billion government bailout last week and Merrill, following its emergency sale to Bank of America last month, plans to cut about 500 jobs in its trading division, three people with knowledge of the plan said on Oct. 21. About 75 of those positions will be in Asia, said a bank official who declined to be identified.
``UBS always seeks to control its costs,'' said Chris Cockerill, a Hong Kong-based spokesman at the firm. ``In the current financial environment we are reviewing all potential areas where greater savings can be made, and travel is one of them.'' He declined to elaborate.
Rob Stewart, a Hong Kong-based spokesman at Merrill, declined to comment.
London-based HSBC has asked its bankers to use video- conferencing to replace business trips when possible to save costs. Travelers for corporate training or internal meetings are required to book economy seats, said spokesman Gareth Hewett.
To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net
By Cathy Chan
Oct. 22 (Bloomberg) -- Merrill Lynch & Co. and UBS AG have asked senior bankers in Asia to fly economy on short-haul flights and reduce non-essential travel as falling revenues force cost cuts, bankers at the firms said.
UBS this month advised bankers to travel economy class for flights of up to five hours, two officials at the biggest Swiss bank said, asking not to be identified because it's an internal policy. Merrill employees have been asked to travel economy for flights of as much as three hours since mid-September, two executives at the firm said.
The world's largest banks and securities firms are tightening costs to survive the financial-market meltdown that toppled Lehman Brothers Holdings Inc. and forced Merrill Lynch to sell itself to Bank of America Corp. The financial-services industry has cut more than 140,000 jobs since a surge in subprime mortgage delinquencies began to roil global debt markets in 2007.
HSBC Holdings Plc's Asian unit asked all its Hong Kong department heads and branch managers to cut travel expenses by 15 percent to 20 percent next year, two officials of the bank said, citing a Sept. 23 memo sent by Chief Operating Officer Jon Addis.
HSBC is recommending lower-cost China Eastern Airlines Corp., the country's third-biggest carrier, over Hong Kong Dragon Airlines Ltd. for business trips to Shanghai, the memo said according to the people. Europe's biggest bank by market value last month cut 1,100 jobs in its global banking and markets division.
Merrill Job Cuts
Mergers and acquisitions worldwide fell 30 percent to $2.43 trillion this year from the same period in 2007, according to data compiled by Bloomberg. Global equity offerings fared even worse, slumping by half to $292 billion.
UBS was forced into a $59.2 billion government bailout last week and Merrill, following its emergency sale to Bank of America last month, plans to cut about 500 jobs in its trading division, three people with knowledge of the plan said on Oct. 21. About 75 of those positions will be in Asia, said a bank official who declined to be identified.
``UBS always seeks to control its costs,'' said Chris Cockerill, a Hong Kong-based spokesman at the firm. ``In the current financial environment we are reviewing all potential areas where greater savings can be made, and travel is one of them.'' He declined to elaborate.
Rob Stewart, a Hong Kong-based spokesman at Merrill, declined to comment.
London-based HSBC has asked its bankers to use video- conferencing to replace business trips when possible to save costs. Travelers for corporate training or internal meetings are required to book economy seats, said spokesman Gareth Hewett.
To contact the reporter on this story: Cathy Chan in Hong Kong at kchan14@bloomberg.net
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