Gird those loins people. According to the Wall St Journal Wall Street's latest problem is too many bankers and not
enough deals.
Amid new regulation, lower profits and a dreary market for
mergers and acquisitions, several banks are planning to trim investment-banking
units that were built for an era of deals aplenty. Several major U.S. banks are planning to trim
investment-banking units that were built for an era of deals aplenty. Anupreeta
Das has details on The News Hub. Photo: Bloomberg.
Having already slashed bonuses, banks including Citi, Goldman Sachs, JP. Morgan Chase. and Morgan Stanley are preparing to cut dozens of jobs,
including some held by senior bankers, according to people familiar with the
matter. As they pursue this targeted round of trims as soon as next month, they
and rivals are also revisiting profit expectations for their advisory
businesses, people familiar with the matter said.
Until recently, Wall Street's ax had largely fallen on
trading desks, which shed thousands of jobs as business dried up due to
regulations and lackluster markets. But
the cost-cutting focus is now expanding to deal makers and corporate advisers
that have remained among Wall Street's most high-profile professionals even as
their contributions to banks' bottom line has been dwarfed by traders. In
addition to mergers-and-acquisitions advisory, investment banking includes
raising capital through stock and debt. The whole paradigm of banking is changing...
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