Wall Street Seen Enduring Deeper Cuts to Boost 2016 Profits
- After highest net income since 2006, firms seek a way forward
- `I don’t think there is any magic wand on the expense front'
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Wall Street banks just eked out their most profitable year since before the financial crisis by slashing budgets. Can they top that?
The sobering answer for many is that they can -- if they cut even deeper than they did in 2015, when they reduced costs by 13 percent and shed more than 20,000 jobs. The five major U.S. investment banks generated $70 billion of net income in 2015 by shaving expenses to the lowest level in seven years, according to data compiled by Bloomberg. They’ll have to continue paring to keep the streak going, at the risk of slicing into muscle and bone.