Thursday's Headlines: Job cuts across Wall Street as trading slows
Lay offs are sweeping across Wall Street, with firms aiming to cut costs as equity and bond trading slow, Bloomberg reports.
Goldman Sachs plans to eliminate 230 jobs in New York starting in September, while Bank of America has already cut 60 jobs in equity sales and trading. Barclay and Credit Suisse are also reducing staff in their investment banking units.
Revenue from trading of fixed income instruments dropped around 30 percent in the second quarter from the previous quarter, with equities trading down roughly 15 percent, Bloomberg said. Citing data from the Bureau of Labor Statistics, it noted that US financial jobs fell to 7.61 million in May. In 2010 jobs fell for the fourth year in a row to an average of 7.63 million, which is more than 8 percent below the 2006 high.
Jobless claims unchanged above 400,000, proof that slow economy creating few jobs work. [Associated Press]
Venture capital firm Andreessen Horowitz hires former Treasury Secretary Larry Summers. [Reuters]
HSBC plans to cut 700 jobs in UK retail business as economic woes hit European banks. [Reuters]
AXA PE purchases Barclays' $740 million private equity portfolio. MarketWatch]
Morgan Stanley CEO James Gorman likely to wait before filling president seat. [New York Times]
Goldman Sachs tells New York state it will lay off 230 workers at the end of September. [DealBook]