Tuesday's Headlines: Goldman Sachs seen cutting more costs, maybe more jobs

Goldman Sachs is likely to expand the cost reductions announced earlier this year by hundreds of millions of dollars, which may result in more lay-offs than originally planned, DealBook reports.

The initiative comes as Goldman Sachs faces what may be its worst quarter since its initial public offering 12 years ago. Earlier this year, Goldman Sachs said it would cut $1.2 billion in costs by the middle of 2012 and fire around 1,000, or 3% of its workers. Now the company expects to widen the cuts by up to $250 million to $1.45 billion. That represents approximately 5% of the firm's spending.

"...As the market turmoil has weighed on trading and other businesses in recent weeks, senior executives have been debating even deeper reductions, according to people briefed on the matter," DealBook writes.

In addition to lay-offs, the firm is eyeing cuts in pay and non-compensation expenses such as real estate and travel, Dealbook says.

Other News:

International regulators unmoved by bank tirades, plan to announce stricter capital rules. [Wall Street Journal]

UBS says it plans to keep UBS Wealth Management Americas brokerage. [Reuters]

UBS's biggest challenge is to make big cuts to businesses very quickly, analysts say. [Financial Times]

Freddie Mac didn't do enough to recover money from banks that sold defective loans, watchdog says. [New York Times]

Most Asia-focused hedge funds now based in Asia as financial sector thrives. [Reuters]

Santander UK CEO Ana Botin to reiterate priorities, try to calm investor nerves. [Wall Street Journal]

Chinese bank stocks drop to record lows as credit boom shows signs of bust. [BusinessWeek]

JP Morgan wants $8.6 billion suit by Lehman Brothers moved to federal court. [Reuters]

Goldman Sachs lawsuit over bonuses paid for 2009 dismissed. [Reuters]