Newspaper article THE JOURNAL RECORD

Wall Street Is Firing _ but It's Also Hiring

Newspaper article THE JOURNAL RECORD

Wall Street Is Firing _ but It's Also Hiring

Article excerpt

By David E. Kalish

Associated Press

NEW YORK _ Let's hope they don't cross paths.

As thousands of Wall Street executives are shown the door by brokerages wounded in this year's financial market downturn, many of the same firms are hiring others to drum up business in potential new areas of profit.

The investment banks hope to develop promising alternatives to traditional money makers such as bond-trading and other departments, which got clobbered in the severe market drop that began in February.

"In spite of the fact that people are getting cut back, there's still a fair amount of expansion on Wall Street," said Gary Goldstein, president of The Whitney Group, an executive search firm in New York.

"Even the big firms that are cutting back are focusing additional resources where there are opportunities."

Major investment banks on Wall Street have cut about 3 percent, or 3,000 of their work forces so far this year in an effort to cut costs in the face of sharply lower profits, said Perrin Long, an independent securities industry analyst.

The profits drop resulted in part from diminished investor interest in bonds and fewer municipalities and corporations willing to float new debt in the wake of the sharp spike in bond yields that began in February.

But the net job loss on Wall Street may actually be closer to 2 percent because of new hires in areas such as trading securities in markets of developing nations, Long said.

In the latest round of cuts, Goldman, Sachs Co. may eliminate up to 10 percent of its 9,000 employees in coming weeks _ mostly traders and support staff in the firm's large fixed-income division.

But the investment bank has just finishing hiring an unspecified number of professionals in emerging market securities, including new staff in Asia and Latin America offices, a source close to the firm said Wednesday. …

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