Wall Street Prepares For Over 100,000 Layoffs

over 100,000 layoffs coming to Wall StreetSix digits on Wall Street usually has a very different meaning. This fall, the country's financial firms could lay off more than 100,000 workers in a wave of belt-tightening, reports say. Leading the charge have been the widely noted cuts to be put in place at Bank of America. The bank is set to implement the largest single job reduction throughout the country this year, according to the AP. (The reductions are to start now, and will continue to materialize through 2014).

In total, some 30,000 BofA jobs are expected to be eliminated this fall, which would follow a slashing of 6,000 jobs from earlier this year. The moves are being made to try and shore up investor confidence in the face of a halving of the bank's market value earlier this year. That assessment stems from soured mortgage investments and the belief that the bank isn't on a sure enough footing to withstand new shocks.

But BofA's cuts are a mere taste of what's to come on the Street. Banks are said to be slimming their rolls for a pair of reasons. For starters, they are responding to a rise in recession outlooks, according to Business Insider. But they are also adjusting to a new finance reality as Dodd-Frank regulations are phased in. Those regulations mandate that banks keep more capital on hand to preclude the need for government bailouts. And so, as a result, the banks are no longer allowed to leverage the same amount of money to place the highest bets possible, spelling doom for the trading desks.

As proof that the moves are being made for the bottom line and not for reasons related to individual competence, the banks are telling their employees now, and providing them with an expiration date of Oct. 1. The extra cushion is being created so that the bankers can apply for new jobs while still working, as opposed to applying from the unemployment line. This standing should enhance their applications.

Of all the cuts being made, perhaps the round of greatest interest to Wall Street analysts and employees are the ones being made at Goldman Sachs. As was reported on AOL Jobs earlier this summer, the famed bank is looking to cut $1.24 million in costs over the next year. A part of that drive is the excising of premier banking jobs, in divisions like equities, that have long been the prize of the finance world. But Goldman is not just cutting as it embarks on a period of restructuring. Instead, it will be adding 1,000 new jobs in Singapore, and then growing its Brazilian workforce by 20 percent with the addition of roughly a hundred new finance spots. The moves are being made as a response to the new regulations, but also as an attempt to keep pace with future trends in finance.



Next: Bank Of America Told To Pay Whistleblower $930,000



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eeverettm

Heil to the One World Order that O is putting in place for us!

September 16 2011 at 3:20 PM Report abuse rate up rate down Reply
Me

I have heard that many of the BofA cuts are a direct resust of the Durbin Ammnedments.
Government need to keep out of business. They told banks how much they could make on debit card transactions. Now we have to deal with the unintended consequenses of the Democrats that don't have a clue about how businesses operate. Chase has already stopped some of the debit card programs because they are not profitable. Who does it hurt......mostly the poor to moderate income. When will the other 48% finally figure out that the Democrats are not here to "help" poor americans.

September 16 2011 at 1:41 PM Report abuse rate up rate down Reply
morphiss7

Does it surprise anyone !!! These firms lay people in America off and hire people in the overseas offices !!
As ameircans we are FOOLS and the FOOL IN CHIEF is OBAMA !!! Americans should boycott these companies like the frigging plague !!!!!!!!!!!!!!!

September 16 2011 at 1:26 PM Report abuse rate up rate down Reply
Robin

Aren't these big finance corporations the "job creators?" Supossedly that's why they get all these extra Bush tax breaks. That's Boehner's explaination. So, shouldn't they be hiring instead of firing?

September 16 2011 at 11:59 AM Report abuse rate up rate down Reply
patdelb4

Obama's plan is coming together, that is BANKRUPTING the United States.
Don't beleive it, look at the past 3 years and what he has given away in stimulus and how much will never be paid back due to banruptcies and how much he has given to other countries and continues his giving away along with his last plan to create a jobs package hidden as a stimulus...
How many packages does it take to save teachers from losing their jobs and schools going in disrepair before people realize Obama is taking us to the toilet...

September 16 2011 at 11:48 AM Report abuse -2 rate up rate down Reply
jlhpcarew

Thanks to Dodd (let me make a deal with Countrywide) and Frank (I want to roll the dice with this a little bit longer) for their backroom deals and crony capitalism.

September 16 2011 at 11:24 AM Report abuse rate up rate down Reply
Leighton

Gov. employees is where cuts could be made ,no one will notice except the overpayed law makers

September 16 2011 at 11:04 AM Report abuse +1 rate up rate down Reply
lindacharliebb

blue cross in indiana to move jobs to manilla , but not workers. the reason is the healthcare reform laws . this is alot worse than printed in the news. foreclorures being held off the market are 3x what is being reported . our kids are going to have it rough . thank you congressfor spending us into dark days.

September 16 2011 at 9:58 AM Report abuse +3 rate up rate down Reply
upmike5

gee more regulations what a surprise more jobs lost don't worry obama has a plan he'll get more jobs lost an spend another trillion in bail outs to finally destroy america.keep believing him people an he'll destroy america look a the damage done since he's been in office

September 16 2011 at 9:45 AM Report abuse rate up rate down Reply
Ken

wow, I thought ALL the jobs went to hindu indians, russians and asians, and arabs I cant believe that there would be hindu indians unemployed

September 16 2011 at 9:25 AM Report abuse +1 rate up rate down Reply

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