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.
he industry has seen a recent spate of big layoff announcements, including 16,000 from Bank of America [BAC 9.10
-0.01
(-0.11%)
] alone.
he industry has seen a recent spate of big layoff announcements, including 16,000 from Bank of America [BAC 9.10
-0.01
(-0.11%)
] 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 on "Closing Bell."
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.
Read more: http://www.cnbc.com/id/49152630
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