RJ and Makay

The March earthquake in Japan has caused more than a quarter of large U.S. based businesses to experience supply chain disruptions or contingent business interruptions.

Most of these companies have Contingent Business Interruption insurance, known as CBI, which covers such interruptions of normal operations and income.  Some of the covered companies still face significant risk, according to a new Greenwich Market pulse study.

U.S. banks BB&T Corp. (BBT) and PNC Financial Services Group (PNC) are among other lenders showing interest in Royal Bank of Canada’s struggling U.S. consumer banking business, according to a Bloomberg report.

RBC purchased North Carolina based Centura Banks, since renamed RBC Bank, in 2001 for $2.2 billion (C$3.5 billion at the time).  RBC Bank has lost money for 10 straight quarters and been on the sales block since earlier this year.

Things have been looking up economically, but the road to recovery continues to be bumpy. In the face of slower revenue growth, increased regulation, and debt problems, many financial services firms are finding a need to cut costs. And, unfortunately, that means layoffs.

Among the companies that are expected to announce layoffs or have already done so are Wells Fargo, American Express, PNC, Fifth Third Bancorp, Synovus Financial, and State Street. In all cases, job cuts are expected to be in the hundreds or even thousands, resulting in expense reductions of tens to hundreds of millions of dollars. The goal, say analysts, is to reduce operating costs by as much as 20% over the next three years.