>> Goldman Sachs chopping the dead wood as business takes a blow in Asia. Reuters exclusively reporting at the end of last week that it's axing 30% of investment bankers across the region. Attention now shifting to why that decision's been made. Deputy Asia Finance Editor, Denny Thomas, is across the story.
>> The two biggest activity that banks like Goldman take inertia because M&A where they advise other clients on acquisitions and fundraising. It's called IPOs in general. Both of them are significantly down in Asia and this gives the Chinese banks an opportunity to expand and take the gap left by these western banks.
As the big banks retreat, the Chinese are using this as an opportunity, and most of the deals are coming from China, so they have an actual advantage to be advising their clients. They are close to the clients, close to the home country, and taking market share from the western banks.
>> China's massive lenders may not be doing Goldman any favors but they're not the only reason for its largest ever cull in Asia. Goldman is thought to have made hundreds of millions of dollars through dealings with 1MDB, the toxic scandal-ridden state-fund set up by Malaysian Prime Minister Najib Razak.
>> The 1MDB scandal has not particularly helped Goldman in getting, winning more businesses. Clearly there has been a reputation damage, and they have seen a lot of bankers from Southeast Asia, being either moved or taken away from following the scandal.>> With a third of Goldman's top Asia bankers soon to be out of a job and many European banks also scaling back in the region, the question for many analysts now is, which Wall Street giant could be next?