Big Banks Planning Big Cuts

A number of New York City’s largest banks, among them, Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC), HSBC (NYSE:HBC), and Barclays (NYSE:BCS) have announced plans to fire up to 10,000 jobs.  Since the city and state governments are very dependent upon the tax revenues they receive from bankers’ outsized salaries, there is concern that another round of massive layoffs at the banks could spell trouble for the governments’ fiscal picture.

Analysts are forecasting losses in the third quarter, which could put more pressure on banks’ management to lay off workers.

Following is some information about these companies’ stock price performance:

  • Goldman Sachs (NYSE:GS): The shares recently traded at $97.93, up $1.79, or 1.86%, on the day.  The shares have traded in a 52-week range of $84.27 to $175.34 and its market capitalization is $49.55 billion.   About the company: The Goldman Sachs Group, Inc., a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investmetns, asset management and securities services.  The Company provides services to corporations, financial institutions, governments, and high-net worth individuals.
  • Bank of America (NYSE:BAC):  The shares recently traded at $46.40, up $0.12, or 1.91%, on the day.  The shares have traded in a 52-week range of $5.13 to $15.31 and its market capitalization is $64.76 billion.  About the company: Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services.  The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary.
  • HSBC (NYSE:HBC): The shares recently traded at $40.44, down $0.25, or 0.54%, on the day.  The shares have traded in a 52-week range of $35.79 to $59.14 and its market capitalization is $144.3 billion.  About the company: HSBC Holdings plc is the holding ocmpany for the HSBC Group.  The Company provides a variety of international banking and financial services, including retail and corporate banking, trade, trusteeship, securities, custody, capital markets, treasury, private and investment banking, and insurance.  The Group operates worldwide.
  • Barclays (NYSE:BCS): The shares recently traded at $11, up $0.08, or 0.73%, on the day.  The shares have traded  in a 52-week range of $8.38 to $21.69 and its market capitalization is $33.52 billion.  About the company: Barclays PLC offers commercial and investment banking, insurance, financial, asset management and related services.  The Company’s banking subsidiaries operates branches in the United Kingdom and overseas.

(Note: Selected financial data are sourced from Google Finance.  All data are assumed to be accurate.)

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