The S&P 500 is set to fall another 8 percent by the end of the year, on top of the 7 percent decline seen since the year's high reached in September, according to a new strategy note by Goldman Sachs.
And another 40,000 investment banking jobs are likely to go as a result.
Wall Street has increasingly taken up its old habit of blaming junior bankers and traders for what goes wrong.
The eurozone crisis will not go away. More than nine out of 10 risk managers at financial firms asked about the greatest threat to the financial system cite sovereign risk. In the second half of 2012, it was the biggest concern of 94% of those asked by the Bank of England, while 77% were most worried about the risk of the economic downturn.
Bank of America has been sued by investors over $261.2m worth of residential mortgage-backed securities.
Millions of dollars in penalties slapped on some of the world’s biggest banks, including JPMorgan Chase, by U.S. regulators are the result of policing powers established after the 2001 collapse of Enron Corp.
Joseph Collins, Refco Inc.’s former outside lawyer whose 2009 fraud conviction was reversed in January, was again found guilty by a jury in federal court in Manhattan.
The shadow banking industry has grown to about $67 trillion, $6 trillion bigger than previously thought, leading global regulators to seek more oversight of financial transactions that fall outside traditional oversight.
Wall Street is preparing to take a financial hit when Dodd-Frank takes effect -- and that may mean that rules intended to bolster the U.S. financial system could instead undermine it.
Citigroup is on track to cut 300 sales and trading jobs globally this year, as part of its plan to streamline its banking operations, the Wall Street Journal reported, citing people briefed on the process.
John Cryan helped resuscitate UBS as finance chief after its state bailout. In leading Deutsche Bank, he may face an even tougher challenge.
Investment bank Jefferies has sued a former client for about $8m in unpaid fees linked to Vodafone Group’s multi-billion-dollar takeover of Spanish cable operator Grupo Corporativo Ono SA.
HSBC is to cut 8,000 jobs in the UK in a move that will see its name and red hexagonal logo disappear from the high street after 15 years.