Investment banks are set to cut 10% to 15% of their staff across the board as turmoil in the markets takes its toll on revenues, the Financial Times reports. The bulk of cuts are expected in structured credit and leveraged finance.
This comes after CNBC's Charlie Gasparino reported on "Power Lunch" Wednesday that cuts could come at Bear Stearns , Lehman Brothers , and Goldman Sachs after the U.S. Labor Day holiday.
The Royal Bank of Scotland has already announced the scaling back its collateralized debt obligations team in response to the credit crisis, while Barclays Capital and HSBC have lost their heads of structured finance.
The Financial Times said that Deutsche Bank is also shutting one of its credit proprietary trading desks in London, following reports that it had lost about US$136 million in the credit markets. People close to the bank said the closure would affect about a dozen people, some of whom would leave the bank. Deutsche Bank declined to comment.