Market slump forces cost cutting: Many on wall street take slash-and-burn approach.

Investment News, February, 2001 by Gabriel Jr., Frederick P.

Belt-tightening time It's belt-tightening time from Wall Street to Market Street. After years of unprecedented asset growth and dizzying levels of trading volume, Wall Street's brokerage and mutual fund companies are faced with a big problem: How to boost income as the stock market cools down.

For many, the answer will likely involve taking a slash-and-burn approach to expenses -- including people costs." "I do expect to see more down-sizing in the weeks and months ahead, particularly if the equity market remains flat," says Mark Zandi, chief economist at Economy.com, an economic consulting firm in West Chester, Pa. "Obviously, if the market begins to decline even further, it will put more pressure on the mutual fund and brokerage...

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