Sign of the Times

I saw this article come across Bloomberg today and I couldn't help but laugh. I think it speaks volumes about not only the current state of the financial industry but also the future outlook. Gone are the private jets, weekend trips across the globe...gone are even first class and business class tickets for legions of bankers (at least the ones that will be left). Welcome the days of the investment banker flying coach. Sign of the times indeed.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aIft9KyDUso0&refer=home

Merrill Lynch & Co., UBS AG and JPMorgan & Chase Co. are telling senior bankers in Asia to fly coach on short-haul flights and reduce non-essential travel as they step up cost cuts, officials at the firms said.

UBS advised bankers this month 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 told 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 trimming costs to survive the credit-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.

``Investment banking has almost disappeared in this market, and with revenue shrinking severely, it's sensible to cut every single type of cost they can,'' said Renault Kam, a senior portfolio manager at Atlantis Investment Management in Hong Kong, which oversees $5 billion. ``We haven't seen the worst yet.''

JPMorgan, the biggest U.S. bank, has requested senior bankers fly economy on flights of less than three hours since late August, said an official who declined to be identified.
Fly Cheaper, Less

Royal Bank of Scotland Plc, which ceded majority control to the U.K. government this month, in an Oct. 16 memo asked workers worldwide to fly economy on regional routes and to cut back on travel, said an RBS banker who's seen the document. RBS spokeswoman Hui Yukmin declined to comment.

HSBC Holdings Plc's Asia unit asked its Hong Kong department heads and branch managers to cut travel expenses by 15 percent to 20 percent next year, two officials at the bank said, citing a Sept. 23 memo sent by Chief Operating Officer Jon Addis.

.....

London-based HSBC has asked bankers to use video conferencing to replace business trips when possible. Travelers for corporate training or internal meetings are required to book economy seats, spokesman Gareth Hewett said.