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Analysts predict that the giant American bank will axe around 25,000 jobs in the next few months. Other key priorities for Pandit is decreasing the bank's IT budget and focusing on core businesses.



Other banks have announced or are expected to announce job losses. Merrill Lynch will cut 4,000 jobs after its $2bn loss in the first quarter. This brings to nearly 40,000 the number of job cut in the financial industry since the beginning of the crisis.



JPMorgan Chase is expected to eliminate a majority of Bear Stearns' 14,000 jobs.



Meanwhile Royal Bank of Scotland is considering the launch of a massive rights issue to strengthen its capital reserve.



Finally, Daniel Bouton will step down as Société Générale's CEO but will remain the French bank's chairman. He will be replaced by Frédéric Oudéa. This follows a rogue trading scandal that has shaken France's second largest bank.