The bank's struggles and those of the country at large seemed to come together very neatly in that bit of news, and it was not surprising to me to hear it mentioned by at least one of about four Wall Street protesters I spoke to recently outside our offices. None of them seemed to know much about the banking industry, but they were surely aware of the lack of jobs out there and that number got their attention.
Many more layoffs are coming in the banking industry, according to Richard Bove, analyst with Rochdale Securities.
In a report published Thursday, he argued revenues will be curtailed due to "a major change in the secular outlook for the industry," adding that, "the next big news coming out of Wall Street will be layoffs and bonus cuts." Bove cited "conversations with a number of New York based brokerage firms," as his source.
Bove does not see banks as job destroyers, however. Instead, he blames politicians and regulators in New York State.
"The politicians who run the state have been advocating suing the industry and forcing cutbacks in incomes and now they will get their wish. It is likely that when the industry does recover it will not be in New York State but rather in other states and countries that have policies more oriented to assisting the industry's future growth," Bove writes, adding that "the impact is likely to be beyond the brokerage industry. Incomes and wealth will decline. This is likely to impact housing prices and the sale of a wide range of products. It is expected to hit the state's tax base."
Sherry Jarrell, professor of finance and economics at Wake Forest University Schools of Business, argues the cuts are necessary so that struggling banks like Bank of America can avoid the fate of Kodak(EK_), which is fighting to stave off a bankruptcy filing.
Many more layoffs are coming in the banking industry, according to Richard Bove, analyst with Rochdale Securities.
In a report published Thursday, he argued revenues will be curtailed due to "a major change in the secular outlook for the industry," adding that, "the next big news coming out of Wall Street will be layoffs and bonus cuts." Bove cited "conversations with a number of New York based brokerage firms," as his source.
Bove does not see banks as job destroyers, however. Instead, he blames politicians and regulators in New York State.
"The politicians who run the state have been advocating suing the industry and forcing cutbacks in incomes and now they will get their wish. It is likely that when the industry does recover it will not be in New York State but rather in other states and countries that have policies more oriented to assisting the industry's future growth," Bove writes, adding that "the impact is likely to be beyond the brokerage industry. Incomes and wealth will decline. This is likely to impact housing prices and the sale of a wide range of products. It is expected to hit the state's tax base."
Sherry Jarrell, professor of finance and economics at Wake Forest University Schools of Business, argues the cuts are necessary so that struggling banks like Bank of America can avoid the fate of Kodak(EK_), which is fighting to stave off a bankruptcy filing.
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