More Bankster Layoffs Coming: 'Bad as I've Seen It'

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More Bankster Layoffs Coming: 'Bad as I've Seen It'

Posted By: Jordon [Send E-Mail]
Date: Monday, 24-Sep-2012 20:18:23

. Banks have been behind the curve in terms of downsizing, with their employees paying for it now through a rash of furloughs, analyst Meredith Whitney told CNBC. The industry has seen a recent spate of big layoff announcements, including 16,000 from Bank of America [BAC 9.10 -0.01 (-0.11%) ] alone. Though banks already have jettisoned about half a million workers since the beginning of the financial crisis in 2008, Whitney said more are to come as the shrinking big institutions struggle to compete. "The banks have been overstaffed for a really long time. If you think about all of the other industries that have gotten more competitive, more profitable, the banking sector and the insurance sector have been laggards behind it, and they employ a lot of people," Whitney said on "Closing Bell." New banking regulations, particularly the Dodd-Frank financial reform bill, have seen the banks shrinking in order to avoid the too-big-to-fail syndrome that caused the industry to push the country into recession. "Interesting for Goldman (Sachs) [GS 116.60 -0.12 (-0.1%) ] — they're cutting all of their highest-paid people," Whitney said. "The industry is as bad as I've seen it. So it's certainly not a great time to be on Wall Street." More here: http://www.cnbc.com/id/49152630 ~~~~~~ Royal Bank of Scotland Cuts 300 More Jobs at Investment Bank Royal Bank of Scotland Group Plc, Britain’s biggest government-owned lender, said it will cut 300 more jobs at its investment banking unit and is “on track” with its plan to exit businesses. RBS (RBS) will eliminate 3,800 jobs at the division by the fourth quarter of next year, compared with an earlier target of 3,500, according to slides based on a presentation delivered by John Hourican, chief of markets and international banking, to analysts today. About 3,000 of the cuts will have completed this year, RBS said. “Cost cutting is really the only thing that the bank can fully control,” said Sandy Chen, an analyst at Cenkos Securities in London who recommends selling RBS. “In the relative absence of new revenue, you’d probably look to cost cutting.” Chief Executive Officer Stephen Hester has reduced assets by more than 800 billion pounds ($1.3 trillion), eliminated 36,000 jobs and scaled back RBS’s securities and Irish units since he took over from Fred Goodwin when the bank was rescued in 2008. The bank in January said it would close or sell its unprofitable cash equities, mergers advisory and equity capital markets divisions. More here: http://www.bloomberg.com/news/2012-09-24/royal-bank-of-scotland-cuts-300-more-jobs-at-investment-bank.html ~~~~~~ Deutsche Bank seek to cut some 3,500 jobs