Goldman Sucks to cut 230 New York City jobs

Discussion in 'Wall St. News' started by BLUEDAY000, Jun 29, 2011.

  1. zdreg


    money is flowing out of socialist obama nanny state U.S.A
    golden slax always goes where the money is flowing to.
  2. zdreg


    Wall St. jobs exodus
    Last Updated: 3:48 AM, June 30, 2011
    Posted: 10:34 PM, June 29, 2011
    Why is Goldman Sachs pre paring to outsource traders, salespeople and investment bankers from here in America, where it has made untold billions over the years as Wall Street's premier trading firm, to places like Singapore and India?

    The answer can be found largely in the 2,000-plus pages of last year's Dodd-Frank financial "reform" law -- which will eventually translate into some 40,000 pages of regulations. The financial industry is still frozen, waiting to find out how bad these regs will turn out; but what all the CEOs of the big banks know for sure is that it's about to get a lot more expensive to do business here.

    The only real question is by how much more expensive. And the banks aren't sitting around to find out.

    Of course, the slowdown that's crimping Wall Street profits is a factor in banks' frenzy to cut costs by eliminating US jobs while expanding in lower-cost places overseas. But they'd expect the business environment to get better eventually -- if the regulatory environment weren't sure to get worse.

    Then-Sen. Chris Dodd, Rep. Barney Frank and President Obama all said that they pushed for regulatory reform to prevent another financial meltdown. But their legacy may well be the decimation of the US financial-services industry, which for all its bailouts, blunders and other ills pumped billions upon billions into the economy over the years, especially here in New York.

    It's not just Goldman, which wants to expand a once-tiny Singapore office by hiring 1,000 executives while it contemplates a major job reduction at home. (Yesterday, Goldman told the labor department it's cutting at least 230 jobs.) Just about every major US bank is looking at outsourcing as a way to pay for the new costs of doing business as regulators hammer out new rules.

    JP Morgan chief Jamie Dimon recently lambasted Fed Chairman Ben Bernanke, saying the prolonged uncertainty over the Dodd-Frank regulations is making it difficult for his bank to lend money to small businesses to help grow the economy. What he didn't say during his mini-tirade is how much his bank is committed to growing outside America to keep pace with competitors like Citigroup, Bank of America, Morgan Stanley and Goldman.

    "Everyone is screaming that the money is now overseas," said veteran market analyst Richard Bove. "Well it's overseas in American banks. What we are seeing is an escape from US regulation."

    The biggest irony is that Wall Street has long been the engine financing the New York welfare state -- yet it's being squeezed by lefty politicians who believe in expanding the national welfare state. The winners are places with well-educated, English-speaking workforces plus lower taxes and less regulation -- in Goldman's case, Singapore and India.

    These same people also claim the mountain of new regs will prevent another banking collapse. But regulations didn't do the job in 2008 and won't in the future. Dodd-Frank fails to get at the root of the problem: Banks were bailed out so many times in the past, they came to expect it -- and so they took on ever-greater risks while chasing ever-greater profits, until some players' huge bad bets were enough to take everybody down.

    Of course, the banks expected some response to that mindless risk-taking. But the monstrosity of Dodd-Frank is that it doesn't touch the real problem -- even as it squeezes profit margins and sends jobs overseas.

    Charles Gasparino is a Fox Busi ness Network senior correspondent.
  3. I am surprised it took them this long to figure it out. That why I got out of New York State last year. If Goldman Sachs were smart they would be headed to Africa to set up shop. That way it new bussiness platform could be setup as a Greenfield Operation. I was also reading how HSBC was in talks about pulling a large segment of thier bussiness out New York as well. You can't just blame GS. Anybody with half a head can see the finacial handwriting on the wall. Don't forget New York lost 2 seats in congress during the last census. The people who left knew what was going on and were sick of footing the bill for the nonsense in Albany.

  4. Kubinec


    What were you doing that you left NYC? Left where?

    NYC is still where people come in droves from other states to find jobs. I meet people all over the place that came here from other states iso work (and I'm not talking about Mexicans).
  5. I have family near there and contacts also I was residing in Western NY. The whole state is not going to turn around in the near future. The loss of population is a clear macro indicator. One family member just passed the bar and cant finf a job as a lawyer Last I heard and was told he to wait until something become availble at a law firm. NY is just blowing smoke and mirrors. The stalling for time is showing how deperate the state is. The only people who are staying are the ones getting a check from the government or not very ambitious. I am currently looking to move abroad. I will take my chances in another country.

  6. Kubinec


    I know what you mean. More than once the thought of leaving this country, or at least state, had flicked in my mind. Good luck!