Layoff in US banking industry to put more than 80,000 out of work


While it seems less Americans are on unemployment lines lately the same cannot be said about people in the U.S. Banking industry. The nation's largest financial institutions have announced layoffs in the coming weeks that will put more than 80 thousand men and women - out of work.

Aaron Elstein reports on the banking industry for Crain's New York business magazine. He says banks are still struggling to control costs, while burdened with debt - in an economy that continues to yield little or no growth.

The ongoing US Economic crisis has created an atmosphere of caution in the banking sector. Big deals worth billions of dollars - once a regular occurrence on Wall Street - are now a rarity.

Regulators have also reduced the amount of money banks can make in business transactions. If streamlining measures are unable to keep up with reduced revenue at the nation's large financial institutions - thousands more in the industry could be getting termination notices
after the end of the next quarter.

Among average Americans, there is very little sympathy for the banking industry since many blame it for the current economic crisis. But those same surveys point to another source for the ongoing woes.

Thousands of banking executives who survive this round of layoffs may keep their jobs but will still feel the affects of a meager year. The banking industry along with the rest of corporate America will be handing our some of the smallest company bonuses in a decade.

Analysts predict the slashing of payrolls in 2012 will not help make for more profits immediately but rather could just help them survive.

Source: Press TV