Global Banks Poised to Cut 101,000 Jobs

[marmar]

(Bloomberg) The biggest global banks are cutting jobs at the fastest rate since 2008 as a weak U.S. economy squeezes revenue, regulators push firms to hold more capital and companies restructure businesses to improve profitability.

The 50 largest banks, including HSBC Holdings Plc (HSBA), Credit Suisse Group AG (CSGN) and Bank of America Corp. (BAC), disclosed plans for almost 60,000 reductions since Jan. 1, according to company statements and data compiled by Bloomberg Industries. At that pace, they’ll cut more than 101,000 jobs this year -- the most since 192,000 positions were targeted in 2008 amid loan losses, a global credit crunch and unprecedented government bailouts.

HSBC’s aim to shed 30,000 workers, unveiled by the London- based firm on Aug. 1, was the single biggest job-cutting announcement since Bank of America said in December 2008 that it would eliminate as many as 35,000 positions, the data show.

Persistent low interest rates, stagnant loan growth and new rules for debit cards will crimp U.S. bank earnings this year. Global regulators, seeking to avoid a repeat of the financial crisis and blunt the impact of potential European sovereign debt defaults, are pushing banks to hold more capital. Firms including Goldman Sachs Group Inc. (GS) are seeking to pare costs in some countries while expanding in faster-growing economies, such as China, India and Brazil. ............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-08/global-banks-poised-to-slash-101-000-jobs-in-fastest-reductions-since-2008.html

[femrap]

1. More unemployed....

Without taxing the Rich, this downward spiral will continue. More unemployed, less help, more austerity on the backs of The Former Middle Class and the working poor. Historically, this has led to blood in the streets.

Even S&P told Washington to raise taxes on the wealthy. More Revenues, less cuts. It's so damn simple.