Friday, July 20, 2012

Open Season on Wall Street Jobs




Since the dawn of humankind, Wall Street has abided by a social-professional compact. It goes something like this: give us your twenties, and a chunk of your thirties—eh, throw in some forties for good measure, Businessweek writes.  Be sure to put in countless 92-hour workweeks, including all-nighters, and ideally the loss of all hope for your starter marriage. In exchange, we’ll make sure you’re financially set for life, complete with 24/7 use of our car service.

That deal, like unlimited wireless data and the internship booze cruise, is having a hard time surviving this Great Recession. Even as the banks have been bailed out, and money now costs next to nothing, the overriding economic torpor means there just isn’t enough business to go around. Dealmaking is nowhere near buyout bubble levels. Ditto trading volumes: Across the Street, revenue from investment banking and trading fell for the seventh time in eight quarters. Europe could be the new Japan. And now China’s slowing?

Put it all together—and borrow the classic euphemism—and the investment banks are now right-sizing their ranks. With first-half revenue at its lowest level since 2005, Goldman Sachs (GS) is hunting for $500 million in additional cost reductions….

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