Current Events > US Banks get ready for shrinking profits and recession

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NEW YORK, Jan 10 (Reuters) - U.S. banking giants are forecast to report lower fourth quarter profits this week as lenders stockpile rainy-day funds to prepare for an economic slowdown that is battering investment banking.
Four American banking giants -- JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N), Citigroup Inc (C.N) and Wells Fargo & Co (WFC.N) -- will report earnings on Friday.
Along with Morgan Stanley (MS.N) and Goldman Sachs (GS.N), they are the six largest lenders expected to amass a combined $5.7 billion in reserves to prepare for soured loans, according to average projections by Refinitiv. That is more than double the $2.37 billion set aside a year earlier.
"With most U.S. economists forecasting either a recession or significant slowdown this year, banks will likely incorporate a more severe economic outlook," said Morgan

Goldman Sachs will start laying off thousands of employees from Wednesday, two sources familiar with the move said Sunday.

Morgan Stanley and Citigroup, among others, have also cut jobs after a plunge in investment-banking activity.
The moves come after Wall Street dealmakers handling mergers, acquisitions and initial public offerings faced a sharp drop in their businesses in 2022 as rising interest rates roiled markets.
Global investment banking revenue sank to $15.3 billion in the fourth quarter, down more than 50% from a year-earlier quarter, according to data from Dealogic.

I hate capitalism, especially since businesses run assuming infinite growth and everyone suffers to make that possible

That doesn't soubd like a go getter who is excited and ready to work above and beyond every day to ensure our company owns every molecule of existence. Sorry but we have to lay you off. Just business...