Northern, WI 04/04/2013 (usastockreport) – GARY Cohn the Goldman Sachs Group, Inc (NYSE:GS) (Current: $143.41, Down by 2.23%) President said that his company and JPMorgan Chase & Co (NYSE:JPM) (Current: $46.85, Down by: 2.36%) are the only two banks amongst the top ranking ones that are not downsizing their staff. Most large international banks are easing off and playing it cool for now. The markets are very tight right now but this kind of a pull-back has never been experienced before. Different banks are taking up different measures to curb costs and maintain overall equilibrium.
All measures being considered
Banks such as UBS AG (NYSE:UBS) (Current: $15.26, Down by 1.48%) and Credit Suisse Group AG (NYSE:CS) (Current: $26.40, Down by 1.16%) are planning to reduce their balance sheets, withdrawing from markets and regions that are not showing any growth and are also cutting-down on all their risk-weighed assets. Deutsche Bank AG (NYSE:DB) (current: $39.24, Down by: 1.85%) is also planning on reducing its balance-sheet leverage while the UK government has placed restrictions on Barclays Plc the London-based bank.
Local banking- big competition
Cohn went on to say that over the past decade, only merging –capacity has been hindered whilst in the current scenario, banks are actually retreating from the capital business market as well as from investment banking. There is a slowdown in competition from other international banking institutions. However, it’s the local banks in various regions across the globe such as Singapore, Brazil, Hong Kong and Japan that are proving to be stiffer competitors to Goldman Sachs Group, Inc (NYSE:GS) (Current:$143.41, Down by 2.23%), Brazilian competitors being the most aggressive.
There was a time when it was a cakewalk for French companies to eke out loans worth $643 million(500 million euros) from banks such as BNP Paribas SA (EPA:BNP) (Current: $40.10, Down by 2.03%) or Societe Generale SA (EPA:GLE) (current: $25.73, Down by 3.01%).Today these banks are merely cold-shouldering all such requests. Survival is all about adaptation and change and Cohn said that Goldman Sachs Group, Inc (NYSE:GS) will be adding to its Brazilian workforce and increasing the number of companies covered by investment banking from 200 to 300. Goldman had also increased its equity capital in the country by 100 percent and taken it to 400 million.