Brokerages Closing Book on Brutal Year

Updated from 10:56 a.m. EST

A calamitous 12 months on Wall Street lurched closer to conclusion Thursday as a trio of top investment banks disclosed steep profit declines and made cautious remarks about the coming year. Some worried the sector's cost-cutting campaign is getting close to the bone.

Goldman Sachs (GS Quote), Lehman Brothers (LEH Quote) and Bear Stearns (BSC Quote) saw earnings plunge due to the recession, soft equity markets and the Sept. 11 terrorist attacks.

Each company reported diminished revenues in underwriting, stock issuance, and mergers and acquisitions fees, with business in all three categories drying up in the hangover from the go-go 1990s. Strength in bond underwriting couldn't offset the equity-side weakness. ...