Big banks have got something else to hide-and this time, they're sugarcoating it.
Recently, big names in the financial sector have participated in some reorganization, attempting to clean up messes left around even before the financial crisis.
But instead of calling a spade a spade-naming the restructuring something that accurately describes the widened margins, losses and lay-offs-they have instead decided to mask the changes with some downright upbeat phrases.
According to the Wall Street Journal, this practice is nothing new: banks usually have to use codenames that throw a heavy cloak around financial deals they're involved in.
But recently, codenames have become more popular-perhaps due to the heightened number of cleanups that have been necessary since movements like Occupy Wall Street. Even HSBC used the word "demising" for a massive job-cut a few months ago.
Banks like Royal Bank of Scotland and Citigroup have followed suit, in efforts to boost morale and soften the blow on tough movements.
RBS nicknamed their sale of 315 bank branches to comply with European regulations "Project Rainbow." Citigroup did the same, and they also have a "Project Rainbow" that consolidates retail-banking systems in a number of countries under one platform.
Barclays has named its sketchy endeavor "Project Mango," based on a bushel of mangos that a client gave CEO Bob Diamond upon resignation of business. "Mango" will apparently put a few thousand employees jobs on the line, as Barclays must consolidate its staff.
Lloyds Banking Group will enact "Project Verde," when they sell hundreds of their branches, putting more jobs right on the chopping block. But for Lloyds, Verde isn't hush-hush-executives often talk about it in public statements.
J.P, Morgan Chase's boss Jamie Dimon has poked fun at the nicknaming, saying that his bank doesn't need to use idioms and phrases to keep an eye on low costs.
