Does not affect biotech, but informs the broker/analyst industry.
Goldman Sachs Fires More Stock Analysts
Monday March 17, 4:27 pm ET
By Lynn Cowan, Dow Jones Newswires
Goldman Sachs Lays Off More Stock Research Analysts, Including Specialist Richard Strauss
WASHINGTON (AP) -- Goldman Sachs Group Inc. laid off three more stock research analysts Monday, including brokerage industry specialist Richard Strauss.
Besides Strauss, specialty retail analyst Tom Filandro and video gaming software Chris DeBiase were let go, said spokesman Ed Canaday, adding that the move was part of a cost-cutting and reorganization plan by Goldman Sachs.
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The Wall Street firm has been changing the way it covers various industries to eliminate specialty coverage and regional industry analysts.
Last month, the firm let go of six other stock research analysts, including financial services specialist Howard Shapiro.
"This reflects the difficult market conditions" and convergence in those sectors, such as mergers between banking and brokerage firms, Canaday said.
Goldman's coverage of about 40 companies was suspended Monday as a result of the three layoffs. Goldman doesn't expect to hire replacement analysts. Instead, it will resume coverage of those companies after it reassigns responsibility for them to other analysts who already work at Goldman.
The field of stock research has come under fire recently after regulators and the New York Attorney General's Office accused some analysts of issuing rosy research reports on companies to win lucrative investment-banking business for their firms.
Under a $1.4 billion settlement, a dozen firms -- including Goldman Sachs -- agreed to pay millions of dollars in fines and to sever links between their research and banking divisions, while funding independent stock research to complement their analysts' work. |
