NEW YORK - US investment bank Goldman Sachs has announced its intention to cut 3,250 jobs - 10% of its international work force. It says the job losses will be spread across the globe.
In September Goldman and rival Morgan Stanley announced they would become regular bank holding companies, due to fears their investment bank model had become untenable.
Until recently, Goldman had fared well despite the current crisis, with limited subprime exposure. However, its third quarter figures saw a 71% drop in profits, down to $810 million.
The bank allocated more than $11 billion to staff bonuses and remuneration for the first nine months of 2008. It is now expected to attempt to recoup some of this staff expenditure.
More on Regulation
Disagreement among FSB members pointed to by BoE letter
Liquidity issues means the MAS is right not to bring in Sef trading
Regulators criticised for reticence over why they rejected some test results
On Thursday, eurozone bank supervisors will be asked to give up dozens of safe harbours
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.