Even Banksters are laying off folks and for all flaws of the industry, especially on Wall Street, banking is really no different than any other business, except that when it makes big mistakes, it gets bailed out.
Goldman Sachs announced that they are cutting more jobs in the trading and investment banking departments... Many of the cuts are aimed at traders who can be replaced with new technology, or back-office, technology and operations staff who can be replaced with less expensive employees, the source said. The bank has been pushing aggressively to replace staff in high-cost areas like New York and New Jersey with less costly workers in Salt Lake City, where the company is building a sizable workforce. … Goldman’s 33,300 employees generated $28.8 billion in revenue and $2.5 billion in profit last year, which amounts to $865,195 in revenue per employee and $75,375 in profit per employee. That represents a 25 percent decline in revenue per worker and a 71 percent decline in profit per worker compared with 2005. How can you lose money when you can borrow from the Fed at 0.15% cost of money? Too Big To Fail is a phrase that is as incorrect as it misleading. Nothing is too big to fail. You may believe that these guys control the universe, and perhaps they do, but if they do, why do they lose money? Answer: they know they will be bailed out.
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The Daily Capitalist