Trading Places
Inside views on the jobs market
India bank unions strike over wages, consolidation
NEW DELHI, Sept 24 (Reuters) – State-run bank employees began a two-day strike on Wednesday protesting delay in wage increases, the head of a workers union said, affecting foreign exchange trading volumes.
Bank unions representing about 900,000 employees of 26 government-run banks went on strike after talks between government officials and Indian Banks’ Association failed on Tuesday.
“Strike has been successful and banking services across the country are paralysed,” said C. H. Venkatachalam, Convenor of United Forum of Bank Unions (UFBU) and General Secretary of All India Bank Employees’ Association.
About 60,000 branches including those of country’s largest lender State Bank of India have been closed, he said.
Foreign exchange trading was hurt as state-run banks, who command more than 50 percent of Indian banking assets, stayed away, senior dealers at three banks and a union leader said.
Volumes were significantly lower than average, resulting in higher volatility in the market, foreign exchange dealers said.
Wall Street job losses may be Asia’s gain
MUMBAI/SHANGHAI: Within hours of Bank of America agreeing to buy Merrill Lynch this week, Indian financial services firm Ambit hired five Merrill executives, a sign that Asia hopes to gain from massive Wall Street layoffs.
For China and India, whose economies are still expanding at well over 7 percent, the global financial industry crisis makes it easier to recruit bankers who are brushing off their resumes.
New York’s governor reckons 40,000 Wall Street jobs could go in a worst-case scenario, with talk swirling of more bank deals and mergers.
Lehman Brothers, which has filed for bankruptcy protection, has around 2,000 staff in India, including its back-office operation, while Merrill has about 500.
Ambit Holdings said on Monday it hired the five Merrill executives from a majority-owned local venture for its institutional equities and equity proprietary trading unit, including a 10-year Merrill veteran as head.
BNP Paribas and Nomura Securities in India are looking to hire Lehman executives, according to investment banking sources who asked not to be named because of the sensitivity of the matter. In Hong Kong, bankers said they were considering hiring from Lehman.
