Layoffs expected to decimate Wall Street ranks

[UpInArms]

Source: Associated Press

NEW YORK (AP) — The U.S. financial services industry is witnessing the bursting of yet another bubble. This time, it's the industry itself.

Bloated by years of frenzied growth, Wall Street banks and other firms are shedding tens of thousands of jobs and slashing entire divisions in their most drastic downsizing since the Great Depression. The moves promise to upend financial services and investment options for Americans from Wall Street to Main Street.

Those layoffs will drain New York and other cities of vital tax dollars while swelling the fast-growing ranks of the nation's unemployed. U.S. employers cut 533,000 jobs in November — the most in 34 years — including 32,000 in the financial-services sector, the government said Friday.

Saddled with heavy losses and a shriveled stock price, Citigroup Inc. last month said it would eliminate 53,000 jobs, the second-largest job cut by a U.S. company on record. Other firms plan to drop the ax on tens of thousands more, especially in areas that specialize in the risky investment products that helped ignite the financial meltdown.

"I think it's pretty clear that the whole financial sector is going to be smaller than it was," said Kevin Logan, chief U.S. economist at investment bank Dresdner Kleinwort. "It's not going to just consolidate; it's going to shrink."

Read more: http://www.google.com/hostednews/ap/article/ALeqM5hZlIFTFyw0rPqDih-NkOfucLP-IQD94U2FAO1

[bemildred]

1. Gosh, this reminds me of the defense business in the early 1990s.

Can we talk about the crappy management yet?

[Cleita]

2. My step daughter just informed me that she's being laid off.

She's happy that they have paid off their mortgage, cars and have little CC debt, but says they are going to have to economize a lot because she made a very good salary. My son in law is still working but he's wondering too.

[polichick]

4. Good for them for paying everything off - smart cookies!

[madrchsod]

15. a very smart step daughter...

looks like they will weather the storm.

[hack89]

3. This is a financial disaster for NY

if it is a permanent change in the financial industry then there will be many years of pain in NY until change their tax structure or significantly reduce government services.

[BrklynLiberal]

5. I hope they start at the top.

[tavalon]

22. They never do

[RUMMYisFROSTED]

6. ...don't let the door hit ya....split ya....

http://images.allmoviephoto.com/2006_Jackass:_Number_Two/2006_jackass_number_two_003.jpg

[stillcool]

9. These jobs are not those filled by..

highly paid executives..not that it matters..

Through October, 130,000 financial jobs had been eliminated throughout the industry this year, according to employment firm Challenger, Gray & Christmas.

The elimination of 53,000 jobs at Citigroup — part of a 20 percent downsizing at the firm — will raise the number to around 180,000. That would be the industry's biggest yearly contraction ever.

JPMorgan Chase & Co. is shedding 10 percent of workers at its investment bank, matching planned cuts at rivals Goldman Sachs Group Inc. and Morgan Stanley. State Street Corp. said it will cut 1,600 to 1,800 jobs, or 6 percent of the investment services company's global work force.
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Opinion is mixed, though, on whether a slimmed-down financial industry will really become more prudent or whether the pursuit of profits will inevitably restore the kind of freewheeling days the led to the meltdown.

[DS1]

7. The people who love seeing job losses are the next fat to get cut

and good. Fuck em.

[StClone]

8. The Top Dogs got theirs though

They ruin things and keep the millions they make in the scam. Is that right!?

[no_hypocrisy]

10. This goes beyond New York City.

Many of the newly unemployed live in the suburbs of Westchester, Nassau, Suffolk, Bergen, and Morris Counties. They are leveraged over their heads. Trying to keep their homes. And if they can't, the property values of their neighbors fall, and don't forget less tax revenue (and NJ's lifeblood is property taxes).

This has a terrible ripple effect.

[FarCenter]

20. NJ property taxes go mainly to support an education establishment that will be unsustainable

Too many districts, too many adminstrators, too many special programs.

[formercia]

11. What, no retention bonus?

Oh, I forgot, this isn't AIG. :sarcasm:

[stillcool]

12. and it's at least 180,000 workers...so far

[formercia]

14. I used to live in Darien CT, many years ago.

I would see them leave every Morning on the train and returning in the PM. It won't be the same for a long time.

[madrchsod]

16. that`s getting close to the steel industry losses

as someone who has been through 3 of these downturns i sympathize with these 180,000 workers...join the club boys and girls it`s going to be a long,long winter.

[madrchsod]

13. if these were factory workers i could grasp what is being eliminated

i have no idea when it comes to the service industry why these jobs and department would be elimanated...is it no product to sell?

[hendo]

19. fewer people investing? NT

[MadrasT]

17. Boo hoo. My heart bleeds. n/t

[Doctor_J]

18. Good. Maybe these people can get actual jobs where they make something

or help someone.

[yurbud]

21. I feel about as sorry as I would for unemployed tobacco execs.

[Romulox]

23. Those jobs aren't coming back. I suggest the people of NY begin RETRAINING immediately

They can train to be croupiers and home health aids! :rofl:

[LeftHander]

24. Financial industry...is depressed then??

"I think it's pretty clear that the whole financial sector is going to be smaller than it was"

Is that because we are in a depression?