It's not surprising that Goldman Sachs will layoff about 10 percent of its staff, or about 3,200 jobs, according to media reports. That's a large cut, relatively. Merrill Lynch has cut about 5 percent so far, and Morgan Stanley has cut even less; in the case of Morgan Stanley, there may be a lot more cuts on the way. 

Goldman Sachs is facing a wrenching transition to a more regulated commercial bank. Expect a low PE for a while, as it figures out the best path. We can't assume its investment banking and proprietary trading prowess will translate into golden status in the commercial banking world--where the likes of JPMorgan Chase and Bank of America dominate. But Goldman Sachs has some really smart people. They'll figure it out.

For more:
- here's the Reuters article

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