Expectations are low for third quarter bank earnings.

Analysts have been busy slashing their estimates in light the recent market carnage, and we're at the point now where we just might see some upside surprises. But no matter what, it's a given that we'll see banks trumpeting newly aggressive cost cutting efforts. There's little else they can do at a time like this.

To drive the message home, we're seeing banks act in ways big and small, meaningful and symbolic. The New York Times reports: "Goldman Sachs recently downsized the drinking cups in its New York headquarters to 10 ounces from 12 ounces, saving thousands of dollars. It has also gone mostly cashless in the cafeteria and other areas, eliminating the need to pay armored truck companies to haul away the money. Barclays...issued a memo reminding employees that work-issued cellphones are to be used ‘for valid business purposes only.' "

Bank of America apparently nixed an annual field day for its municipal bond department, "a country club affair in New Jersey that in past years included sport stations outfitted with beer kegs." At Morgan Stanley, one employee at a town hall meeting this summer told executives there seemed to be less greenery around the office. The answer from CEO James Gorman: "Every dollar we don't spend is a dollar available for the bottom line."

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