Tuesday's Headlines: Wall St. May cut bottom 5 to 10 percent

Wall Street firms may cut staff if revenue continues to slump through the second quarter, Normura analyst Glenn Schorr told Bloomberg Radio. In an interview with host Tom Keene, Schorr said: "Most firms will cull what they'll call the bottom five to 10 percent each year to make room for new recruits. It usually doesn't happen at the high end of that range. However, when the revenue environment becomes challenged the way it is now, should that drag on, it unfortunately is part of the purging process."

Net revenue at the six biggest U.S. banks fell 13.3 percent in the first quarter from a year earlier, while second-quarter trading and banking businesses have started off slower than analysts expected. To the point: Eton Park Capital and Viking Global were among at least five hedge funds that exited their Citigroup stakes in Q1, as investors shied away from U.S. banks, according to BusinessWeek.

Other news:

Goldman is revving up its investment-banking operations as deal volume accelerates and overhauled its senior mergers-and-acquisition ranks. [WSJ]

Big surprise: Harvard Business School graduated the most top corporate CEOs, according to a look at the Fortune 100 CEOs, 42 of which have a business graduate degree. [Fortune]

The New York attorney general has requested information from BofA, Goldman and Morgan Stanley about their pre-crisis mortgage securities operations.[NY Times]

Tax concerns are motivating American multinationals to use their overseas earnings in cross-boarder M&A. [Financial Times]

Carlyle Group plans to add managed accounts and hedge funds to its products. [Pensions & Investments]

China International Capital Corp. aims to complete the first round of fund-raising this month for $768 million to invest in domestic takeovers. [Bloomberg]

Azentus Capital Management, the hedge fund run by former global head of Goldman's principal strategies proprietary trading, may manage about $1.8 billion by June 1.[Bloomberg]