Yes folks, now that the holidays are approaching, more layoffs are on the way for the big banks, according to
prominent bank analyst Glenn Schorr. The Nomura analyst in a recent report
warns that many banks, which are still overstaffed, need a more liberal
wielding of the ax to squeeze out more profits in the coming years, amid a
global market that continues to look sluggish.
“While overcapacity is weighing on returns under the current
environment, most bank managements have been in the camp that the industry is
currently experiencing a cyclical rather than secular downturn,” Schorr writes.
“So they’ve been slow to do too much on the head-count front,” the bank analyst
said regarding layoffs. According to
Schorr’s research, big banks like JPMorgan, Credit Suisse, UBS and Barclays
have actually added jobs over the past three years. Goldman Sachs and Morgan
Stanley have only slashed about 1 and 2 percent of their work forces,
respectively……
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