Four top US investment banks have increased staff around the world by more than 10% this year, although headhunters expect cuts amid talk of a US recession.

Staff numbers at Goldman Sachs, Merrill Lynch, Lehman Brothers and Bear Stearns have risen by between 10% and 14% in the first three quarters of this year compared with the same period last year, according to research by CIBC World Markets analyst Meredith Whitney.