129773822111093750_103Internationally renowned investment banks began a new round of layoffs. Investment banking and trading, research and other departments, such as job cuts, change display future investment banking business. Goldman Sachs investment banking and trading divisions replaced the background support to become the main objective of the new wave of layoffs. JPMorgan Chase and Bank of America Merrill Lynch began layoffs, late last year, Bank of America Merrill Lynch announced that in the first quarter of this year from the Global Conference1600 people. Bubble period in the process of expanding financial sector is shrinking. Previously, the financial sector, have already far exceeded levels needed for the real economy. Since in the 1940 of the 20th century, the financial sector's role in the economy has been on an upward, but as of 2000, before and after, excessive state track seemed to be in from the financial sector to the real economy. University of New YorkPhilippon
tera gold, an economist's study showed that, in 2000, financial intermediation costs (the service fees charged for that financial institutions) started rising, by 2010, the cost had risen to the highest level for over 140 years. Reasonably appears to lower the cost of information technology role is today can only show that the financial sector over-extendedInstead of reducing operational efficiency. The subprime crisis in the financial sector gradually declining percentage, 2010, financial accounting for United States GDP share is 8.5%.����Philippon believes that proportion dropped to 7% per cent is reasonable. After the subprime mortgage crisis, regulation of financial derivatives to be key sectors. The "Volcker rule" (VolckerruLe) prohibiting banks from proprietary trading, derivatives transactions and regulators to promote more exchanges, derivatives trading public, may have a negative impact on profitability. On March 14, former Goldman Sachs Executive Director for Europe, Middle East and Africa United States head of equity derivatives, GregPublished open letter of resignation, attacked Goldman "money first" culture of greed, but banking circles believe that, due to the derivatives markets shrink, resulting in like the Smith's Executive career hopeless, pay fell only grumble. At the end of the second quarter of 2009, United States financial institutions to hold more than 200 trillion dollars in notional derivatives value, United States five silverDerivatives dealer 97%, this will translate into billions of dollars a year in trading revenue, but now, sharp decline in income. Even worse is, other trade is declining. Global equity underwriting revenues, and the decline in fixed income
tera power leveling, description in addition to derivatives, including investment banking, commodities, fixed-income, also into the contraction period. Goldman Sachs stock underwriting NET collectionInto the down 26%, dragging the entire investment banking departments of revenue shrank to $ 4.355 billion, up by 9%. Fixed income, currencies and commodities trading net income 34% less per cent, drag on institutional client services net income dropped $ 21% per cent. Goldman Sachs investment and lending operations net income of only US $ 2.14 billion, up under the bigSliding 72%. Although the performance of JPMorgan Chase and Bank of America Merrill Lynch last year have different rate rise, JPMorgan net income hit a record of $ 19 billion last year, than the increase over 2010. $ 1.4 billion net income recorded in the Bank of America Merrill Lynch, reversing a net loss of us $ 2.2 billion for the year 2010. However, including investment banking, fixed income, Sales trading, global banking and markets business recorded a net loss of $ 433 million in the fourth quarter, NET 2.967 billion dollars for the whole year, up by 53%; residential real estate service business's net loss expanded from $ per cent in 2010 nearly 1 time, amounted to $ 19.529 billion. Once the sights to emerging marketsInternational Investment Bank, found that developments in financial markets in emerging market not so fast, Singapore, Hong Kong and other places cannot accommodate Zeng Gaocheng $ 600 trillion over-the-counter derivatives market. And, as the weak global economy, except for commodities other than oil prices still hovering at the bottom. Although the foreign exchange derivatives trading surge in but crazy than ever of the OTC derivatives marketAnd real estate derivatives still cannot compare.����Increase in algorithmic trading and special investors, including Government foreign investment funds increased, the market situation of both into a clash of, rather than the large investment bank designed around derivatives sales, alone. If you do the financial markets than the milky way, so now after a peak of expansion, in the local area, Individual market although it will break out, but cannot resist the shrinkage of the market as a whole. One day, the market will expand again, maybe to wait out the round Valley
tera power leveling, deleveraging ends, or renminbi as currency in the international stage.
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