If you enjoy the content at iBankCoin, please follow us on TwitterNEW YORK (Reuters) – Traditionally fat expense accounts on Wall Street are about to get slashed as major banks set out to cut spending and staffing due to weaker markets and new regulation that will cut in to their profits.
Goldman Sachs plans to cut as much as $1 billion in non-compensation expenses — costs not directly linked to salaries, bonuses and benefits — over the next 12 months, a person familiar with the matter told Reuters on Thursday.
“We will turn over every rock,” the source said.
The bank, which currently employs some 35,400 staff around the world, will also review staffing levels, and job cuts are “certain” to come over the next months, the source added, though the bank has not set a specific target.
Goldman Sachs declined to comment.
Joined Nov 11, 2007
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In other insignificant news, we have decided to acquire parts of the Treasury department we don’t already own.
I think this is a good sign. Financials seem to operate like oil service companies. They go on a huge spending spree right at the top of the market. Then they slash slash slash right at the very bottom.