Who Says Wall Street Isn't Hurting?
Pay among big banks is expected to drop 27 percent this year to its lowest level since 2008
You may be surprised to learn which industry has announced the most layoffs so far this year: finance.
Through November, companies in the financial sector have announced more than 56,000 layoffs, according to outplacement firm Challenger, Gray & Christmas. That number is up 162 percent from 21,430 financial sector cuts at this point a year ago. Headlining those job cuts is
Bank of America, which said in September that it planned to cut 30,000 jobs over the next few years. Another investment bank,
"Obviously, the banking sector is not out of the woods," says
While every sector of the economy suffered job losses during the depths of the recession, cuts in the financial services industry were relatively mild. The closest official measure that tracks the finance sector is what the
Meanwhile, other harder-hit industries like manufacturing and construction were decimated during the recession. Each sector has lost about two million jobs since the downturn began in
Big banks came roaring bank in 2009 and 2010 on the heels of government bailouts, but now they're dealing with a new batch of issues, most notably the worsening debt crisis in
And as Bank of America experienced recently when it tried to introduce new fees, it's going to be difficult for banks to pass on costs to consumers that they say stem from increased regulation. "[The financial sector's] fixed costs are set to rise fairly markedly going forward because of the requirements for higher reserves of capital, of keeping more liquidity on the books," says
Compensation for employees of big investment banks is also expected to drop.
This year, pay at U.S. banks is expected to decline by 27 percent to its lowest level since the 2008 financial crisis, according to a new report released by consulting firm
In October, the
Despite the cutbacks,
- White House Reiterates Urgency to Renew Payroll Tax Cut Bill
- Homegrown Obstacles to the Economic Recovery
- Does Extending Jobless Benefits Help the Economy?
- Men Continue To Fare Badly in This Economy
- Public Blames Congress, Not Obama, For Sour Economy
- Restore the Basic Bargain
- A Main Street Jobs Agenda
- Who Says Wall Street Isn't Hurting?
- Road Map to a Housing Rebound
- Housing Prices Drop Back to 2003 Levels
- GOP 2012 Candidates Split on Payroll Tax Cut
- We Need to Focus on the 99 Percent
- A More Permanent Solution Is Needed
- Keynesian Policies Have Failed
- Many Time-limited Tax Breaks Never Die
- A Strong Recovery Remains Elusive
- An Economic Loser in the Long Run
- Extending Payroll Tax Cut Will Extend U.S. Debt
- Jobs Report: A Glimmer of Hope for the Housing Market?
- Unemployment Rate Drops to 8.6 Percent
- Beige Book Shows Stronger Growth, but Europe a Major Threat
- What Happens If We End the Fed?
- Online Shopping Deals Hurt State Budgets
- 5 Reasons the Economy Will Be Better in 2012
- Occupy the Budget
- Unemployment Benefits Extension an Economic Booster
- Are Employers to Blame for the Skills Gap?
- Drop in Jobless Claims Adds to Optimism About Broader Recovery
- Larger Temporary Workforce Could Be New Normal
- Americans Not Moving Around Like They Used To
- Home Sales Up But Financing Issues Block Bigger Growth
- FHA Loan Limits Get Boost, but Will It Help Housing Market?
- Are Things Looking Up for the Housing Market?
- Good News in Housing Starts, But No Turnaround
- Middle-Class Neighborhoods Disappearing
- America's Real Poverty Rate
- Luck Matters
- Major Economies Headed for Slowdown
- Top Democratic Governor Accuses Republicans of Neglecting Economy
- Deficit Is Greatest Security Threat
- Cutting Back on Defense Spending Will Make the World Safer
- It Is Time for Discipline, Defense
- Defense Spending Not to Blame for Deficit
- Military Already Underfunded Thanks to Obama
- Cutting Defense Spending Is Short-sighted
- Reasonable Ways to Cut Defense Budget
- Cutting Military Spending Does Not Mean Cutting Defense
- Cuts to Defense Budget Might Be Inevitable But Pentagon Knows Best
- Is the National Security Complex Too Big to Fail?
- Seniors and the Deficit: Why working longer isn't part of the solution
- The Coming Collision
- A Fair Tax That Really Is One
- An Idea Dysfunctional Washington More Than Happy to Let Die
- Dear Average American: It's All Your Fault
- America's Growing Income Gap by the Numbers
- Wall Street Is Back to Its Old Tricks
- 7-in-10 Blame Economy for Hiring Freeze
- Grim Warnings for the Deficit 'Super Committee'
- Consequences of a Debt Committee Stuck in Neutral
- Is the Rising Star of U.S. Manufacturing Fading?
- Can Foreign Buyers Save the U.S. Housing Market?
- Consumers Spooked, But Still Spending (For Now)
- The Recession's Impact on Baby Boomer Retirement
- Cutting Taxes for the Rich Never Ends Well
- Secret of the Flat Tax
- Current Tax Code Is Confusing
- Flat Tax Would Eliminate 'Crony Capitalism'
- Flat Tax Would Introduce New Problems
- Flat Tax Unites Americans
- Flat Tax Unleashes Economic Growth
- Flat Tax Shifts Burden to the Middle Class
- Flat Tax Will Benefit Only the Rich
- Jobs Report Disappoints, but Unemployment Falls to 9 Percent
- Fed Stands Pat, But Signals Darker Days Ahead
- Young Adults Suffering More Financially than Older Generations
- The Perverse Side Effect of the Euro
- Equal Taxation for Wealth and Work
- Not All Taxes Have to Hurt
- GDP Up: Will Recession Fear Fade as Economy Shows Signs of Life?
- Measuring Economic Progress
- Great Recession Means a Diminished American Dream for Young Adults
- Inflation Could Help Flagging Economy
- Home Economics
- Skills Gap Plagues American Manufacturing Industry
- Beige Book Says Economic Recovery Still Slow. What Now?
- The Ranks of the Underemployed Continue to Grow
- More Americans Falling Behind On Mortgages
- Fed Created A Recipe for Disaster in Housing Market
- The Fed Caves to the Whims of Congress
- Federal Reserve is No Longer Beyond Influence
- Blame Bernanke and Federal Reserve for Economic Crisis
- Fed Saved Economy but Did Little to Rein in the 1 Percent
- For Better or Worse, Fed Is Just Doing Its Job
- Flat-Tax Fraud and Why America Needs a Truly Progressive Tax
- The Broken Contract: Inequality and American Decline
- The Wisdom of Retrenchment: America Must Cut Back to Move Forward
- Shortchanging Our Paychecks
- Unemployment Drops Sharply in October
- Recession Fears Fade But Euro Debt Crisis Still Looms
- Haves and Have-Nots: Cities with Highest and Lowest Poverty Rates
- Is the Economy Better Off Without Washington?
- How to Rein In Healthcare Costs
- Why Mortgage Rates Are Rising
- Industry Must Do its Part to Educate Workforce of the Future
- Jobs Council Issues Growth Proposals, Acknowledges Dysfunction
- September Jobs Report a Pleasant Surprise
- US Economic Woes Put China in the Political Crosshairs
- A Devalued Renminbi Makes Wealthier Americans
- Sluggish America Can Still Be a World Leader
- Behind Europe's Debt Crisis Lurks Another Wall Street Bailout
- United States - South Korea Trade Deal Win-Win for Jobs and Economy
- Obama's Trade Deal Delays Have Cost Jobs
- Reconsider Dodd-Frank, Piece by Piece
- Dodd-Frank Brings Transparency to Financial Industry
- Dodd-Frank is More Right than Wrong
- Dodd-Frank Is a Counterproductive Mess
- Repealing Dodd-Frank Would Put the Economy in Danger
- A People's History of the Great Recession
- Job Destroyers Don't Deserve Tax Holiday
- What the Recession Has Done to the Rich
- Pot Calls Kettle Risky: The Wit and Wisdom of Tim Geithner
- New Layoffs Are Harbingers of Broader Economic Changes
- Is Obama's National Infrastructure Bank the Answer on Jobs?
- We Are In a Modern-Day Depression
- Dunkin' Donuts, McDonald's Franchises Warn of Job Cuts
- Despite High Unemployment, Millions of Job Openings
- How Renters Could Save the Housing Market
- How Low-ball Appraisals Are Limiting Housing Recovery
- The Moral Question
- Rise of the Renminbi as International Currency
- United States Woos Foreign Shoppers to Boost Sagging American Economy
- How to Create More Jobs by Lowering Wages: Texas and America
- 15 Stunning Statistics About the Jobs Market
- Training Unemployed for Specific Jobs Could Solve Many Problems
- Housing Slump Will Hurt Economies Well Into Future
- Can the Government Help the Housing Market?
- Are American Consumers Relapsing Into Debt Addiction?
- Obama Deficit Plan Could Derail Hopes for Super Committee Success
- Raising Retirement Age: Reflection of Our Evolving Economy
- Why Math and Science Education Means More Jobs
- A Good Fight
- America's Government Contracting Bonanza Bilks Taxpayers
Available at Amazon.com:
Who Says Wall Street Isn't Hurting? | Politics
Copyright 2011, U.S. News & World Report