Goldman Sachs to Cut Staff 10%

Slumping profits are 'payback' from Main Street whipped by bad practices

(NEWSER) - Those concerned about the nation’s banks should forget about the “softly, softly policy” of the Obama administration that has allowed Goldman Sachs to go back to business as usual in spectacular fashion. The real problem, Paul Krugman writes, is banks like Citi and Bank of America that are still floundering despite taxpayer largess. And the calculus remains the same: “Heads they win, tails the rest of us lose.” More»

(NEWSER) - Companies looking to cut labor costs are increasingly turning to salary reductions rather than further layoffs in an attempt to save employee morale, the Chicago Tribune reports. One extreme case is Acco Brands in Illinois, which imposed a six-week, 47% reduction for all workers instead of downsizing. "It's an alternative to permanent reductions in force," an Acco spokesman says. More»

Recession, takeover of Merrill to blame for latest employee dump

(NEWSER) - Bank of America said today it will cut between 30,000 and 35,000 jobs in the next 3 years, the AP reports; the move is spurred by the continuing economic downturn and the bank’s recent purchase of Merrill Lynch. Cuts will be broad and will affect both the parent company and its new acquisition. Final plans for the downsizing are expected in early 2009. More»

Credit downgrades key catalyst in Wall Street titan's loss of value

(NEWSER) - After dodging many of the bullets that left its Wall Street peers wounded or dead, Goldman Sachs faces a net loss of up to $2 billion for the fourth quarter, the Wall Street Journal reports. The loss of $5 per share is five times worse than analysts feared as the firm deals with writedowns across its portfolio. Shares plunged $13.23, or 17%, yesterday. More»

'Oracle of Omaha' offers financial, psychological help to stressed America

(NEWSER) - Amid the financial panic of 1907, financier JP Morgan stepped in to play the role of central bank, crafting an economic rescue plan and using his personality to offer worried Americans a psychological boost. Today, Warren Buffett’s financial aid to Wall Street and calming influence on Main Street are echoing Morgan’s work, the New York Times reports. More»