-Caveat Lector- Go To Original http://www.truthout.org/docs_02/10.14D.wall.st.layoffs.p.htm Wall St Girds for Thousands More Layoffs By Brian Kelleher Reuters
Saturday, 12 October, 2002 NEW YORK (Reuters) - The paucity of mergers and other deals on Wall Street has traders and bankers spending most of their time these days worrying about their jobs. "Clearly the industry has staffed up to a level that is no longer warranted, and even the cutbacks that have been done thus far are proving not to be enough," said Gerold Klauer, founder of boutique investment bank Gerard Klauer Mattison and now a managing director at hedge fund Cumberland Associates. The latest round of job cuts came to light on Sunday, as the stock market remained in the doldrums early in the fourth quarter. Sources at J.P. Morgan Chase & Co. Inc.JPM.N and Merrill Lynch & Co. Inc.MER.N -- which have already had dramatic layoffs -- told Reuters the firms were planning to hand out thousands more pink slips. Credit Suisse First Boston is also planning layoffs, CNBC reported on Monday. Officials for the firms declined to comment. Wall Street is hurting from a dwindling number of lucrative underwriting and merger advisory opportunities amid the stumbling stock market. Most firms are still making money, but revenues and profits are down. Investment banks and brokerages have cut 61,000 jobs since the end of 2000, bringing their ranks down to 722,000 employees, according to the Securities Industry Association. Goldman Sachs Group Inc.GS.N , Lehman Brothers Holdings Inc.LEH.N and Morgan StanleyMWD.N last month indicated more job cuts were on the way, although they will be modest. "I expect there to be continued head cuts all across Wall Street," said Jeffrey Harte, an analyst at Sandler O'Neill. "For the most part, it's more along the lines of what you'd call paring headcount as opposed to big 10-15 percent individual cuts in a company." GLOOMY BONUS OUTLOOK Banking sources on Sunday said J.P. Morgan could cut as much as 15 percent of its 20,000- person investment banking workforce. J.P. Morgan has already warned that bad investments would cut into its third quarter profit. Merrill was preparing further layoffs after cutting about 15,000 workers in the past year, sources said. J.P. Morgan ended the second quarter with 95,878 employees, down more than 1,000 from the end of the first quarter. The firm cut about 8,000 jobs last year. Job cuts at J.P. Morgan are "not even a question," said Joan Zimmerman, an executive recruiter at Rhodes Associates. All investment banks are pondering cuts, she said. "It's an ongoing and painful process," she said. To cope with the weak conditions, firms can lay people off or pay them less, as compensation expenses are the biggest single cost for Wall Street firms. The companies typically pay out about 50 cents for each dollar they bring in in revenues. "With the exception of very few bright spots, particularly in fixed income, (bonuses) are going to be very painful," said Zimmerman. "Clearly down from last year." (In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.) © : t r u t h o u t 2002 | t r u t h o u t | forum | issues | editorial | letters | donate | contact | | voting rights | environment | budget | children | politics | indigenous survival | |energy | | defense | health | economy | human rights | labor | trade | women | reform | global | <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html";>Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/";>ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
