Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty
 

Big Banks See Downturn Settling In

NEW YORK, Aug. 29 (UPI) — A painful reality of lower expectations is beginning to feel real to the U.S. banking community, a former investment banker said.

“People heard all these things before, but the reality of seeing the numbers is finally sinking in,” said John Chrin, formerly an investment banker at JPMorgan Chase, now associated with Lehigh University.

Banks are undergoing a second wave of layoffs, frequently cited as the quickest way to reduce costs, The New York Times reported Monday.

“It’s hard to imagine big institutions achieving their pre-crisis profitability levels,” Chrin said, which means banks are not only laying off staff, they are seeking new ways to raise revenue, including annual fees on services that never had them before.

Southeastern bank SunTrust has recently added a $5 monthly fee to customers who use debit cards to pay on-going bills. Wells Fargo is also planning an additional $3 monthly fee to debit card users, starting with a test run in five states.

Other banks are canceling customer incentive plans or cutting back on free programs.

Meanwhile, UBS and Bank of America have announced layoffs of 3,500 workers with thousands more layoffs possible at BofA.

Banks laid off more then 428,000 since the financial crisis began. By late 2010 and early 2011 hiring had begun again, but that didn’t last long. ABN Amro, Barclays, Bank of New York Mellon, Credit Suisse, Goldman Sachs, and HSBC are among the larger banks that have announced layoffs recently, the Times said.

Smaller profits will likely mean smaller bonus checks or raises. Johnson Associates, a firm that consults with banks over compensation, expects trader bonuses will drop 15 percent to 30 percent for 2011 with investment and commercial banker bonus checks holding steady.

Moody’s Analytics has said hiring this year will be down to levels seen in 2000. “The trajectory of revenue growth may be lower for quite some time,” said Moody’s financial industry analyst Marisa Di Natale.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Facebook Conversations

Join the Discussion:
View Comments to “Big Banks See Downturn Settling In”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at newstips@personalliberty.com

Bottom
close[X]

Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to PersonalLiberty.com,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.