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Economy

Crisis Set To Cost 100,000 European Bankers Their Jobs

Europe’s “systematic crisis,” as EU Commission President José Manuel Barroso recently described the situation, has banks across the region preparing for widespread layoffs. Just this week France’s BNP Paribas gave word it’ll be letting 1,400 employees go.

Danske is one of several European banks that will be cutting staff
Danske is one of several European banks that will be cutting staff


*NEWSBITES

BERLIN -- The euro crisis has infected Europe's banks, which are depositing billions with the European Central Bank (ECB). Bankers are fearing for their jobs – with good reason.

On Wednesday, French bank BNP Paribas announced it would be cutting some 1,400 jobs. And Italy's Unicredit, which has been under enormous market pressure for months, is planning to let 6,150 people go by 2015, or some 3% of its workforce. The Milan bank suffered a huge loss of nearly 11 billion euros in the third quarter.

The job cuts are occurring in banks across Europe, not just in the main euro crisis countries. According to the Bloomberg news agency, the Royal Bank of Scotland (RBS) is cutting 3.4% of its jobs, the Spanish Intesa Sanpaolo nearly 2%, and the Danske Bank a whopping 9%.

Overall, 100,000 European bankers are set to lose their job based on cuts agreed upon this year. And one look at the third quarter figures indicates that many banks may well increase the number of jobs they plan to slash.

Meanwhile, European supervisory authorities are trying to form a more detailed picture of the extent and distribution of risks, Raimund Röseler, the chief executive director of banking supervision at Germany's Federal Financial Supervisory Authority (BaFin), told the Financial Times Deutschland.

Banks are being called on to disclose how many CDS derivatives they bought and sold so that a better picture may be formed of what and where the risks are.

In comments before the European Parliament in Strasbourg, EU Commission President José Manuel Barroso expressed just how worrying the banking situation is. Europe now faces a "systemic crisis' requiring not only a stronger commitment to Europe, but further measures to combat the euro crisis – such as Euro Bonds, he explained. Barroso said he was preparing to offer more precise details next week about how Euro Bonds will be laid out.

Read the full story in German by J. Dams, M. Greive and H. Zschäpitz

Photo – king_david_uk

*Newsbites are digest items, not direct translations

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Geopolitics

Patronage Or Politics? What's Driving Qatar And Egypt Grand Rapprochement

For Cairo, Qatar had been part of an “axis of evil,” with anger directed at Al Jazeera, the main Qatari outlet, and others critical of Egypt after the Muslim Brotherhood ouster. But the vitriol is now gone, with the first ever visit by Egyptian President al-Sisi to Doha.

Egyptian President Abdel Fattah al-Sisi met with the Emir of Qatar in June 2022 in Cairo

Beesan Kassab, Daniel O'Connell, Ehsan Salah, Hazem Tharwat and Najih Dawoud

For the first time since coming to power in 2014, President Abdel Fattah al-Sisi traveled to Doha last month on an official visit, a capstone in a steadily building rapprochement between the two countries in the last year.

Not long ago, however, the photo-op capturing the two heads of state smiling at one another in Doha would have seemed impossible. In the wake of the Armed Forces’ ouster of the Muslim Brotherhood government in 2013, Qatar and Egypt traded barbs.

In the lexicon of the intelligence-controlled Egyptian press landscape, Qatar had been part of an “axis of evil” working to undermine Egypt’s stability. Al Jazeera, the main Qatari outlet, was banned from Egypt, but, from its social media accounts and television broadcast, it regularly published salacious and insulting details about the Egyptian administration.

But all of that vitriol is now gone.

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