(1) Slower revenue growth due to lower loan demand suggests the economic recovery and stock market rally is more a product of infinite liquidity and accounting flexibility than increased private investment and aggregate demand.
(2) The public sector following the private sector’s instinct to survive will announce even greater layoffs without 'creative' Federal assistance.
Headline: Lenders See Little Choice: Layoffs
The banking industry, racked by the financial crisis and facing slower revenue growth, is starting to cut costs increasingly at the expense of jobs.
Wells Fargo & Co. (NYSE: WFC - News) and American Express Co. (NYSE: AXP - News) said Wednesday that they would take action to reduce expenses and lay off employees to become leaner. PNC Financial Services Group Inc. (NYSE: PNC - News) and Fifth Third Bancorp (NYSE: FITB - News) said Thursday they too want to become more efficient.
For Synovus Financial Corp. (NYSE: SNV - News), that means cutting jobs. The bank said last week it would eliminate 850 jobs, 13% of its staff, and close 39 branches to save $100 million in expenses a year.
State Street Corp. (NYSE: STT - News) reiterated Wednesday that it is on track to save as much as $625 million in expenses through 1,400 job cuts to be completed this year. Barclays Capital laid off 600 employees world-wide earlier this year.
Source: finance.yahoo.com
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