Category: Goldman Sachs (Page 1 of 5)

Goldman Sachs Is Beginning A New Round of Layoffs

Market News Daily - Goldman Sachs Is Beginning A New Round of Layoffs.
Market News Daily – Goldman Sachs Is Beginning A New Round of Layoffs.

Goldman Sachs (NYSE:GS) is beginning a new round of layoffs at the managing director levels across the globe according to people familiar with the matter.

The bank layoffs are part of a plan to cut costs which has already seen three rounds of cuts this year so far.

“About 125 managing directors, including some in investment banking, will lose their jobs,” a person was quoted as saying.

In May, the bank cut a few hundred jobs and in January, it announced it had eliminated roughly 3,200 positions.

The bank had about 45,000 employees in the first quarter, per WSJ.

“Senior executives at Goldman and other investment banks expected an investment-banking rebound to occur during the first half of the year, but that failed to materialize.

The recent crisis among some regional banks, the Federal Reserve’s campaign to tamp down inflation via interest-rate increases, and recession fears have threatened to extend that slowdown. 

Executive compensation has also been on a decline.

The bank said its board had awarded Chief Executive David Solomon compensation of $25 million for his work in 2022, compared with $35 million the previous year.

This comes to a reduction of approximately one third.

Read: New Study Shows Nearly 190 Banks on Verge of Collapsing

Goldman Sachs stock is down more than -9% this year-to-date.

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Recent Goldman Sachs News

Market News Daily - Goldman Sachs Is Beginning A New Round of Layoffs.
Market News Daily – Goldman Sachs Is Beginning A New Round of Layoffs.

Goldman Sachs is currently under a new investigation by the Fed and SEC.

(Reuters) The U.S. Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs Group’s role in two deals with Silicon Valley Bank that preceded the latter’s collapse, the Wall Street Journal reported on Thursday citing people familiar with the matter.

Silicon Valley Bank had booked a $1.8 billion loss on the sale of a bond portfolio to Goldman.

The Wall Street giant was also an underwriter for a failed share sale by the bank that eventually led to the meltdown.

The Fed and the SEC are seeking documents related to Goldman’s role as both buyer of the securities portfolio and adviser on the capital raise, the report said.

They are looking to see if Goldman’s investment banking side and its trading division were improperly communicating about the portfolio sale, the report added.

“SVB engaged Goldman Sachs to assist with a proposed capital raise and sold the firm a portfolio of securities.

Prior to that sale, Goldman Sachs informed SVB in writing that we would not act as their advisor on the sale, and that SVB should not rely on any advice from the bank in this regard, but instead hire a third-party financial advisor,” a spokesperson for Goldman said.

An SEC spokesperson said in an emailed statement the agency “does not comment on the existence or nonexistence of a possible investigation”.

A spokesperson for the Fed declined to comment according to Reuters.

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Market News Today - Goldman Sachs Is Beginning A New Round of Layoffs.
Market News Today – Goldman Sachs Is Beginning A New Round of Layoffs.

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Goldman Sachs Gets Ready to Fire Hundreds of People

Market News Daily - Goldman Sachs Gets Ready to Fire Hundreds of People.
Market News Daily – Goldman Sachs Gets Ready to Fire Hundreds of People.

Goldman Sachs (NYSE:GS) is getting ready to fire hundreds of people in the latest wave of cuts happening throughout the remainder of the year.

“The Wall Street giant is under pressure due to falloff in investment banking activity,” says the Wall Street Journal.

People familiar with the matter say the financial giant is readying cuts that will impact a range of employees, including managing directors and other senior executives.

One of the people said the layoffs would affect fewer than 250 jobs.

The timing couldn’t be determined but the cuts could occur within a few weeks, some of the people said.

The layoffs would mark a third round of job cuts at Goldman in less than a year.

Goldman cut a few hundred employees in September as part of normal management of staffing levels and then eliminated roughly 3,200 positions, or about 6% of employees, in January.

The bank had about 45,000 employees in the first quarter, per WSJ.

“Senior executives at Goldman and other investment banks expected an investment-banking rebound to occur during the first half of the year, but that failed to materialize.

The recent crisis among some regional banks, the Federal Reserve’s campaign to tamp down inflation via interest-rate increases, and recession fears have threatened to extend that slowdown. 

Read: New Study Shows Nearly 190 Banks on Verge of Collapsing

Bank Layoffs Trigger Panic in Banking Industry

Market News Daily - Goldman Sachs Gets Ready to Fire Hundreds of People.
Market News Daily – Goldman Sachs Gets Ready to Fire Hundreds of People.

JPMorgan (NYSE:JPM) has cut 500 additional jobs following the new layoffs in First Republic Bank where more than 1,000 employees were notified of being let go.

Reuters reported on Friday that the bank was cutting about 500 employees this week across its various departments, according to a person familiar with the situation who asked not to be identified discussing personnel matters.

The layoffs will affect employees across the bank’s main businesses — consumer, commercial banking, asset and wealth management — as well as technology and operations, the source said.

Just a day prior to the 500 additional layoffs, JPMorgan said it was laying off 1,000 First Republic Bank employees.

“The cuts are a further blow to First Republic employees, who have already had a challenging two months.

Following the collapse of Silicon Valley Bank and Signature Bank in March, customers of First Republic withdrew tens of billions of dollars of deposits and the lender was ultimately shuttered by US regulators and sold over a weekend to JPMorgan,” said FT.

Within the next 30 days, JP Morgan will notify First Republic employees of their job status, and not everyone will be offered a position with the bank.

Morgan Stanely (NYSE:MS) also cut around 70 dealmakers in Europe; the latest round of layoffs to hit the Wall Street bank last week.

Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decision earlier this week on Monday according to people familiar with the matter.

Read: Morgan Stanley CEO Steps Down in Middle of Banking Meltdown

Other Serious Bank News Today

Banking News Today - Latest Bank News and Updates.
Banking News Today – Latest Bank News and Updates.

The New York City (NYC) Banking Commission is freezing new bank deposits at Capital One (NYSE:COF) and KeyBank.

Following the first-ever public hearing held by the New York City Banking Commission on Thursday last week, all three members voted to freeze deposits at Capital One and KeyBank after the banks failed to submit required plans demonstrating their efforts to root out discrimination.

JPMorgan had a similar occurrence when the bank began to freeze customer bank accounts in its latest scandal.

Republican attorneys general from 19 states say the bank is “persistently” discriminating against its own clients and closing bank accounts without warning.

However, Capital One’s story is a little different.

New York City Comptroller Brad Lander, one of three members of the Commission, also voted against designating three other banks to hold public funds: International Finance Bank, PNC Bank, and Wells Fargo, per New York City’s Comptroller press release.

“Banks seeking to do business with New York City must demonstrate that they will be responsible managers of public funds and responsible actors in our communities,” said Comptroller Brad Lander. 

“Unfortunately, despite several opportunities to do so, five banks failed to comply with the New York City Banking Commission’s designation process – leaving us to conclude that they are not taking meaningful actions to combat discrimination in their operations and are not responsible stewards of public dollars.

I’m grateful to the Mayor, Finance Commissioner Niblack, Treasurer Jackman, Banking Commission Member Jenerette, and our partners at the Department of Finance for working with us to strengthen oversight over the banks that profit from public funds.”

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Market News Today – Goldman Sachs Gets Ready to Fire Hundreds of People.

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Crisis: US Banks Are Now Cutting 3,000 Roles Globally

Market News Daily - Crisis: US Banks Are Now Cutting 3,000 Roles Globally.
Market News Daily – Crisis: US Banks Are Now Cutting 3,000 Roles Globally.

US banks are now cutting 3,000 roles globally in the latest spree.

The US bank’s latest job cuts will hit 3,000 roles globally across most of its key divisions, as it embarks on its second round of redundancies within the space of six months, says FinancialNews London.

Morgan Stanely (NYSE:MS) recently cut around 70 dealmakers in Europe; the latest round of layoffs to hit the Wall Street bank this week.

Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decision earlier this week on Monday according to people familiar with the matter.

At the senior level, approximately 10 managing director dealmakers were cut in the region, the people added.

In January, Morgan Stanley’s rival Goldman Sachs laid off more than 3,000 employees and cut executive salaries.

Around 50 dealmakers were hit by the job losses in Emea, FN reported.

The ongoing deal triggered several big banks to trim their workforce this year.

Bank layoffs will continue throughout the year.

The latest 1,000 bank employee layoff by JPMorgan (NYSE:JPM) has creating panic in the banking industry.

About 1,000 First Republic (OTCMKTS:FRCB) employees have lost their job across all of First Republic’s businesses, per Financial Times.

“The cuts are a further blow to First Republic employees, who have already had a challenging two months.

Within the next 30 days, JP Morgan will notify First Republic employees of their job status, and not everyone will be offered a position with the bank.

Bank Accounts Are Being Frozen

Market News Daily - Crisis: US Banks Are Now Cutting 3,000 Roles Globally.
Market News Daily – Crisis: US Banks Are Now Cutting 3,000 Roles Globally.

JPMorgan is freezing customer bank accounts in the latest bank scandal.

Republican attorneys general from 19 states say the bank is “persistently” discriminating against its own clients and closing bank accounts without warning.

The law enforcement officials, led by Kentucky Attorney General Daniel Cameron, sent a letter to JPMorgan CEO Jamie Dimon stating that the banking giant’s practices go against the company’s own policies on equality, per Business Insider.

The letter, which has now been published by the Wall Street Journal, states that JPMorgan has repeatedly discriminated against customers based on their religious or political beliefs.

“It is clear that JPMorgan Chase & Co. (Chase) has persistently discriminated against certain customers due to their religious or political affiliation.

This discrimination is unacceptable.

Chase must stop such behavior and align its business practices with the anti-discrimination policies that Chase proclaims.”

The New York City (NYC) Banking Commission said on Thursday it is freezing new bank deposits at Capital One (NYSE:COF) and KeyBank.

Following the first-ever public hearing held by the New York City Banking Commission on Thursday, all three members voted to freeze deposits at Capital One and KeyBank after the banks failed to submit required plans demonstrating their efforts to root out discrimination.

Bank Lay-offs Continue

Bank layoffs 2023 and banking crisis news.
Bank layoffs 2023 and banking crisis news.

Hundreds of Silicon Valley bank employees are being let go quick, per Axios.

First Citizens Bancshares (NASDAQ:FCNCA) on Wednesday laid off nearly 500 Silicon Valley Bank employees.

According to an email sent this morning to all employees by First Citizens CEO Frank Holding Jr., none of the eliminated position were “client facing,” nor were they India-based support staff.

A source also says the layoffs represent less than 3% of First Citizens’ total workforce, according to Axios.

Holding Jr. wrote the following statement:

“Given the challenges faced by SVB in early 2023, it is increasingly clear that we must make decisions to right-size our scope and scale to remain competitive.”

“As a result, we are taking difficult but necessary actions to ensure that our workforce and costs are appropriate for a bank our size. That means that some members of our team will be transitioning out of the business effective today.”

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Market News Today - Crisis: US Banks Are Now Cutting 3,000 Roles Globally.
Market News Today – Crisis: US Banks Are Now Cutting 3,000 Roles Globally.

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Hundreds of Bank Employees Are Being Let Go Quick

Market News Daily - Hundreds of Bank Employees Are Being Let Go Quick.
Market News Daily – Hundreds of Bank Employees Are Being Let Go Quick.

Hundreds of Silicon Valley bank employees are being let go quick, per Axios.

First Citizens Bancshares (NASDAQ:FCNCA) on Wednesday laid off nearly 500 Silicon Valley Bank employees.

According to an email sent this morning to all employees by First Citizens CEO Frank Holding Jr., none of the eliminated position were “client facing,” nor were they India-based support staff.

A source also says the layoffs represent less than 3% of First Citizens’ total workforce, according to Axios.

Holding Jr. wrote the following statement:

“Given the challenges faced by SVB in early 2023, it is increasingly clear that we must make decisions to right-size our scope and scale to remain competitive.”

“As a result, we are taking difficult but necessary actions to ensure that our workforce and costs are appropriate for a bank our size. That means that some members of our team will be transitioning out of the business effective today.”

Additionally, a number of top-level executives and bankers left for roles at other companies.

PitchBook reported this month that nearly 80 senior bankers have been poached from SVB by companies like HSBC, Stifel, Moelis and Company, and JPMorgan Chase. 

Related: Morgan Stanley CEO Steps Down in Middle of Banking Meltdown

Morgan Stanley Announces Mass Layoffs

Market News Daily - Hundreds of Bank Employees Are Being Let Go Quick.
Market News Daily – Hundreds of Bank Employees Are Being Let Go Quick.

Morgan Stanley announced 3,000 job roles will be cut in second round of layoffs earlier this month.

The bank joins peers like Citigroup and Goldman Sachs, all of which have announced layoffs thanks to a dismal forecast for corporate deals and IPOs this year.

Citigroup is cutting hundreds of jobs across the company, with the Wall Street giant’s investment banking division among those affected.

The cuts amount to less than 1% of Citigroup’s 240,000-person workforce, according to people familiar with the matter, who asked not to be named discussing personnel information.

Staffers across the firm’s operations and technology organization and US mortgage-underwriting arm are also among those affected.

A spokeswoman for Citigroup declined to comment. 

The move comes just weeks after rival JPMorgan Chase & Co. cut hundreds of mortgage employees. 

Goldman Sachs Group Inc., for its part, embarked on one of its biggest rounds of job cuts ever in January when it planned to eliminate thousands of positions across the company.

“The banking sector is really going through it right now. As the industry still gets used to the new landscape without regional bank First Republic in it, Morgan Stanley has become the latest to confirm more mass layoffs.

As the economy lags and talk of a recession grows, deal volume has been way down, which is hurting some banks despite stellar earnings,” says Forbes.

Related: JPMorgan Is Freezing Customer Bank Accounts in New Scandal

Big Banks Are Also Closing Several More Branches

Big banks such as Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) are going to close several more branches.

In Philadelphia, Wells Fargo has closed 17% of its local bank branches since 2020.

PNC is not far behind, shuttering 15% of its branches in the Philadelphia area, per the Philadelphia Business Journal.

Bank of America has also followed suit, closing 5% of its physical locations in the region, as well.

Big banks are closing branches in New Jersey, Maryland, Ohio, Washington, D.C., Illinois, and Michigan, as well as out west in Nevada, California, and Arizona, per The Street.

According to the U.S. Federal Deposit Insurance Bureau (FDIC), large commercial U.S. banking locations have fallen from 8,000 in 2000 to 4,236 by 2021 and 4,194 by 2022.

The spider web of U.S. branch bank offices tied to big banks has slid significantly, as well.

“US banks closed 149 branches and opened 49 in March, resulting in a total of 78,588 active branches,” S&P Global Market Intelligence data reported on April 28, 2023.

If the trend of current bank branch closings continues there may be no bank branches left in 10 years.

Self Financial estimates the number of U.S. bank branches will fall from about 60,000 in 2023 to approximately 15,660 in 2030 – and continue falling until there are no bank branches left by 2034.

Related: New Study Shows Nearly 190 Banks on Verge of Collapsing

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Market News Today - Hundreds of Bank Employees Are Being Let Go Quick.
Market News Today – Hundreds of Bank Employees Are Being Let Go Quick.

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