France’s Société Générale announced plans to cut jobs and costs and sell toxic assets worth 4 billion euros in order to bolster its balance sheet, hoping to mitigate some of the damage that might be wrought by a Moody’s downgrade or Greek default.
According to Rochdale’s Dick Bove, Citigroup (NYSE:C) and JPMorgan (NYSE:JPM) are the only two U.S. banks with significant exposure to the European debt crisis. Citi holds about $23 billion in Italian and Spanish debt, while JPMorgan risks writedowns on $43 billion in loans to Italy, Ireland, and Spain.
Bank of America (NYSE:BAC) CEO Brian Moynihan has announced plans to cut $5 billion in costs annually by 2013 as part of his “Project New BAC,” though he did not say how the cuts would be achieved, or whether they would include job cuts.
Citigroup (NYSE:C) has cut U.S. banks’ profit estimates for the third quarter by an average of 45%.
HSBC (NYSE:HBC) is looking to sell its non-life insurance business for as little as $1 billion, according to a Reuters report, since the unit is not core to its operations and doesn’t fit with the bank’s plans to streamline operations.