An article relating to this blog post on Finextra:
Stretched back offices win reprieve as FSA warns banks on staff cuts
The Financial Services Authority has warned UK investment banks to improve their risk pricing procedures and stop firing middle and back office staff involved in crucial valuation control functions.
Good for the FSA for warning the investment banks on staff cuts in middle and back office functions .
Clearly from the banks side, it is the usual story. Back and middle office staff are expendable. They are simply an added cost “burden” that has to be cut as soon as margins are squeezed.
Imagine ripping out half your car’s engine simply because the petrol price has gone up?
What should be squeezed are exorbitant bonuses and other totally undeserved perks that the "star" front office performers enjoy.