JP Morgan Stanley chases axes jobs

As figured out through newspapaper articles and the ft.com that the New York based banking conglomerate plans to cut 3,000 jobs in their investment banking unit and freeze base salaries as well; in addition, Morgan Stanley is scaling their securities operations by 10% and up to 10% of its management division. In a move to reform and adjust its risky mortgages, in this harsh economic period, JP Morgan aims to reorganize its portfolios, sell off some assets and cut costs to withstand the brunt of this unforgiving recession.

The turbulent economic environment looks to be getting murkier; Citigroup Services and Goldman Sachs have also announced that they will reduce their workforces by 10%. Indicators point to the fact that things are likely to get even worse than better, in the short-run. With hundreds of thousands of borrowers unable to pay back their personal and business loans, credit card debts and/or mortgages, JP Morgan is looking at becoming leaner in this financial crisis in order to cope with the current crippling economics.

To re-forge a sustainable financial business model and return to ‘normal times’ the financial industry may need a lot of re-engineering and ‘bailing out’.

But what ever happened to responsible and self-governing contingency planning, recovery plans and sound financial mechanisms and policies?

Who is to be held accountable? And, does the government always have to bail out these financial giants in recessionary times due to their own inefficiencies?

When will they ever learn to get their act together and become fully self-sufficient?

I think it is time for federal banks like these to learn from these hard lessons and always have responsible, adaptable and responsive back up plans for worst case scenarios, like the current scenario taking the financial industry by storm.