Layoffs, Week of 2/26/09: GS, JPM, MS, BofA-- Will We Recover?

ibhopeful532's picture
Rank: King Kong | 1,033

According to Dealbreaker, layoffs are planned tomorrow at Goldman, MS, and BofA with possibly JPM following suit soon.

Abovethelaw has announced that Latham (V10 firm) is shedding some 70-100 associates, including FIRST YEARS (from what I understand, a big no-no for these law firms).

AIG, GM, RBS, Citi loses an exorbitant amount of money, all on the verge of collapse.

Seriously, what the hell is happening?? Are we going to be rubbing sticks together for fire soon?

Sidenote: How are the European banks, Deutsche in particular, along with CS and UBS doing (okay so UBS isnt doing too well). DB and CS have been out of the news lately, good?

Comments (8)

Feb 26, 2009

Credit Suisse Group AG (CSGN.VX) will need to take another $2.5 billion of writedowns on its residual exposure to fully complete its exit of troubled assets, an ING analyst said.

However, analyst Alain Tchibozo expects the Swiss bank's earnings capacity to recover by 2010.

With trading continuing to account for two thirds of the investment banking revenues, Credit Suisse's revenues are not expected torecover fully until next year, the analyst said.

Feb 26, 2009

Or...CS could just throw them into Partner Asset Facility and call them bonuses.

Damn that was the most brilliant move ever (paying Dirs/MDs in CDO)

Feb 26, 2009

Oh hey, just messin' with ya about those job cuts from the House of Dimon earlier. Though Bearpont Morgan Mutual said this morning that cuts from the WaMu acquisition would clock in at about 12,000 total, that number was apparently revised to 14,000 this afternoon.

Feb 26, 2009

Maybe this is the apocalypse the Mayan calendar was referring to

Feb 27, 2009

Credit Suisse is exiting some of the riskier and more capital-intensive investment-banking activities, for example mortgage lending and highly structured derivatives, and beefing up in equities, foreign exchange and advisory businesses.

What does this mean for the future of S&T? Does this imply that banks won't focus as much on S&T and cut back significantly the number of people employed in trading?

Feb 27, 2009

Absolutely not. For the banks that survive, the model won't change much except that there will be slightly less complexity, a few products will disappear, and some prop areas might be smaller. Other than that, the increase in spreads will make up for less leverage. At least i hope. . .

Feb 27, 2009

To address your side note, Banco Santander continues to print money despite the continuing global economic gong show.

Mar 4, 2009