Goldman doubles profit, plans layoffs
By Christina Rexrode
Associated Press / July 20, 2011
NEW YORK - Goldman Sachs Group more than doubled its profits last quarter, to $1.05 billion.
Goldman also said it would eliminate as many as 1,000 jobs to cut costs.
Goldman will be cutting about $1.2 billion in expenses, which could include as many as 1,000 employees nationwide, said David Viniar, the bank’s chief financial officer. He also said the bank will be “prudent’’ with spending and maintaining high levels of reserves.
Investment banking revenue jumped 54 percent on an increase in mergers and acquisitions and underwriting other kinds of deals. Revenue from investment management, rose 14 percent.
Goldman paid a $550 million fine last year - the largest ever paid to the Securities and Exchange Commission - after it was accused of misleading investors about mortgage securities.
State Street cutting 850 technology jobs, most of them in Bay State
By Beth Healy
July 20, 2011
State Street Corp. said yesterday it will cut 850 jobs, including 558 in Massachusetts, as it launches a second major round of layoffs in less than a year.
The cuts come as State Street reported yesterday an 18 percent surge in its second-quarter earnings from a year ago, to $502 million, or $1 per share.
The company has a history of rolling out layoffs even when its finances appear strong. In late 2008, as it accepted a $2 billion capital infusion from the federal government during the financial crisis, State Street announced plans to cut 1,800 jobs. The company repaid the funds in 2009 and went on to post a $1.6 billion profit in 2010, as markets rebounded.
Even with that success, State Street filed for an $885 million federal tax refund for 2010, after taking a loss on billions of dollars in risky mortgage investments the prior year.