Wall Street securities firms 'to cut 80,000 jobs'

8 September 2010

Companies based on Wall Street will cut around 80,000 jobs in the next year and a half as growth levels begin to slow down, it has been forecast.

According to a new paper from Meredith Whitney, a former Oppenheimer & Co analyst who is now in charge of her own company, the cutbacks will be in the global securities industry, reports Bloomberg.

"The key product drivers of Wall Street's revenues and profits over the past decade have been in a structural decline over the past three years," said the paper.

It was added that 2010 will mark the first year in which many Wall Street-based firms will undergo "structural changes".

Last month, the Securities and Exchange Commission (SEC) expressed its hope that higher financial rewards for whistle-blowing on questionable behavior on Wall Street will lead to more information being passed to the regulator.

Stephen Cohen, a spokesman for the SEC, told the Financial Times that the organization is hoping to attract higher-level employees to get in contact about questionable practices at their company.

By Gary Cooper

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