What to make of Goldman Sachs' analysts cuts

November 11, 2008 | By Jim Kim

Goldman Sachs surprised some people when it was revealed that William Tanona, the firm's erstwhile financial services analyst, was among the analysts who were cut. On one hand, it seems that equity research was largely spared. Only six lost their jobs, out of a total cut of 3,300 jobs. On the other hand, there may be more analyst cuts coming. Some think that Goldman Sachs was never fully sold on the value of equity research, in the wake of the tainted research scandals of five years ago. There were rumors a while back that it wanted to get rid of research all together. The company has also decided to drop coverage of Citigroup and JPMorgan Chase, reports Reuters. So what does this mean? Are Citigroup and JPMorgan Chase no longer worth covering? There may be more going on than we know.

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