Goldman Sachs (NYSE:GS) is reportedly cutting the bonus pool for its senior executives by half following a tough year for the bulge bracket US bank.
M&A deals have dried up, with few IPOs and secondary issues while trading volumes are under pressure due to the uptick in the interest rate cycle.
Bloomberg first reported that Goldman plans to cut year-end bonuses for its traders, with chief executive David Solomon also talking down expectations at a conference hosted by the bank earlier this week.
The bank cut 2% of staff alongside its third-quarter earnings update in September but did not cut deeper reportedly due to hopes its investment banking business might pick up again in the New Year.
There has been little sign of that yet, however, and watchers of the bank have speculated that its cost base is under scrutiny again with bonuses likely to be next to feel the impact.
In September, Goldman said it was scaling back its consumer banking ambitions after quarter earnings tumbled 44%, though this was better than Wall St predictions.
Credit Suisse, meanwhile, has raised a further Sfr4bn Swiss franc (US$4.25bn) 98.2% taken up of an Sfr2.2bn entitlement offer alongside an Sfr1.8bn subscription by institutional investors and the Saudi National Bank.
Saudi’s national bank contributed around Sfr1.4bn in the subscription for a 9.9% stake.
The new cash is a linchpin of chief executive Ulrich Koerner’s plans to revive the scandal-ridden banks via a focus on wealth management.
The Zurich-based lender posted another multi-billion deficit in its latest quarter and forecast a loss of US$1.6bn for the final three months of 2022.
As part of its restructuring, Credit Suisse has already announced 9,000 job cuts.