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 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. 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….
More? Check out http://www.cnbc.com/id/49152630
No comments:
Post a Comment