Chief executives at financial services firms continue taking different tacks to how they steer their firms amid the current market turmoil, with Bank of America’s head promising to continue hiring as planned and Goldman Sachs warning it that it may need to slash expenses and staff, according to news reports.
“We don’t have any plans to make any major adjustments because frankly we have those plans to adjust our headcount at all times,” BofA chief executive officer Brian Moynihan said in an interview with Bloomberg on Thursday. “It’s a constant planning process in our company — how we use that human capital even more effectively and efficiently.”
Moynihan said that the firm stays on top of its expenses by managing its workforce numbers, the news service writes, adding that the company’s second-quarter earnings report showed that BofA hired over 1,600 people in the latest quarter.
The CEO also said that BofA saw loans, particularly on credit cards and through mortgages, rise back up to pre-pandemic levels., according to Blomberg.
“We’re not seeing the stress. And when we talk to our customers, they’re not seeing the stress in their business models yet,” Moynihan told Bloomberg.
Moynihan’s comments came a few days after Goldman Sachs chief financial officer Denis Coleman said that his company will step back from its hiring goals.
"Given the challenging operating environment, we are closely re-examining all of our forward spending and investment plans to ensure the best use of our resources," he told analysis on Monday during the firm’s earnings call, according to Reuters. "Specifically, we have made the decision to slow hiring velocity and reduce certain professional fees going forward, though these actions will take some time to be reflected in our results."
Last week, JPMorgan chief Jamie Dimon said that his company has no intention of changing its plans despite an “economic hurricane” on the horizon.
On the other hand, Morgan Stanley chief financial officer Sharon Yeshaya said that his firm may slash expenses in certain areas.
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