Goldman Said to Seek Deep Cost Cuts

The transcript discusses significant cost-cutting measures in the banking sector, comparing current actions to those in 2011. It highlights recent dismissals, spending restrictions, and strategies by CEOs like Lloyd Blankfein to navigate market challenges. Financial projections for Goldman Sachs and Morgan Stanley are examined, with expectations of reduced operating expenses but significant revenue drops. The transcript also covers Bank of America's cost-cutting efforts and financial performance, noting further job cuts may be necessary.

What major action did banks take in 2011 that is being compared to current cost-cutting measures?

• Launched new financial products

• Announced a billion dollars in trimmed costs and cut 1000 jobs

• Expanded into new markets

• Increased interest rates

What strategy has CEO Lloyd Blankfein implemented to cope with the bond trading slump?

• Reducing customer service hours

• Increased marketing budget

• Relying more on junior bankers and investing in technology

• Opening new branches

What is the expected percentage drop in operating expenses for Goldman Morgan Stanley?

• 29%

• 15%

• 10%

• 45%

How much did Bank of America's expenses decrease by, according to the report?

• 6.4%

• 5.0%

• 10.2%

• 8.5%

What was the percentage drop in Bank of America's net income?

• 18%

• 5%

• 13%

• 20%