Bank Layoffs Exceed 100,000

I don't know about 100,000 but here's some good evidence of a retrenchment
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http://www.bloomberg.com/news/2012-09-28/new-york-plaza-district-offices-empty-as-banks-cut-space.html

Manhattan’s Plaza district, the area near Central Park that commands the nation’s highest office rents, has a glut of space as financial firms cut back and tenants seek trendier neighborhoods south of Midtown.

The availability rate for offices in the Plaza submarket reached 12.3 percent last month, a two-year high, as space leased to Citigroup Inc. (C) and General Motors Co. (GM) went on the market, according to data from brokerage Colliers International. It was 10.5 percent in the third quarter of last year.

The Plaza district -- the area between Sixth Avenue and the East River from 47th to 65th streets, anchored by the landmark Plaza Hotel at Fifth Avenue and Central Park South -- is home to some of the nation’s most expensive and prestigious office towers, including the General Motors Building and 9 W. 57th St. About 30 percent of the market is financial-service firms, which have announced about 60,000 job cuts worldwide this year, according to data compiled by Bloomberg.

“The Plaza’s weakness is symptomatic of a larger problem,” said Michael Knott, a real estate investment trust analyst with Green Street Advisors Inc. in Newport Beach, California. “Manhattan’s economic engine is not firing, and that, of course, is finance.”

Financial and securities firms employed about 444,000 people in New York City as of last month, about 30,000 fewer than they did in August of 2007, according to the city’s Independent Budget Office.

These figures don't include the large number of compliance, legal, and operational risk people being HIRED by the banks & financial service companies in order to implement the big reforms e.g., Dodd-Frank, Basel. Ironically, the reforms are creating these jobs.

thats right regulation increases jobs and is good for the economy...hahaha thats a good one

Offsetting bank firings is rising compliance hiring and the new wave of IT hiring, a la google and future Cornell tech center. Also realize some fired are rehired as consultants so that bank can unload pension and Obama healthcare burdens. Then foreigners have also picked up the slack with their entourages. Read Crains about surge in hiring. Very deceptive if you look at unemployment rate. Need I add the pencil pushers and their staff at government agencies like the United Nations. With QE infinity expect condo prices to keep firming.

bernie, a real pearl of wisdom. of course (head slap) why didnt we all take into account the job creation that these reforms will usher into this new economy. bernie, meet socialist, socialist, meet bernie. begin backwards thinking discourse. sheeeessshhh.

Didn't steve say the same exact things 4 and 5 years ago?

Bernie - "These figures don't include the large number of compliance, legal, and operational risk people being HIRED by the banks & financial service companies in order to implement the big reforms e.g., Dodd-Frank, Basel. Ironically, the reforms are creating these jobs."

I think you have it wrong. Since the jobs are listed by industry, increased compliance people would be included in that 444,000 figure, which means that the number is down 30,000 AFTER all the additional hiring done for compliance. More to the point, the new hires are not at the pay of those they eventually replaced since none of these people want to give huge pay to the guys whose job it is to say "no".

Furthermore, there are probably going to be even more firings in the future. Revenue and income has been slowing and so total salary will need to be cut. This can either happen through everyone taking a haircut or cutting staff levels. My bet is there will be a bit of both.

The city's hope is that the job losses can be replaced with high-tech and media-tech jobs, and maybe they can to some degree, but that means more sales in Brooklyn as few in that crowd prefers neighborhoods above midtown.

I think those 1000 at JPMorgan is meaningful for this forum. But in general, looking at numbers in 100,000 range, you have to use some common sense to what it means to NYC real estate. Numbers come from high paying jobs (banking, and lessor extend compliance) and low paying jobs (retail branches). And high paying jobs cut overseas won't have as much impact on NYC real estate...

How does a major slowdown of high finance overseas not affect NY? The whole point of much of our own finance is the huge amounts of money that were sloshing around the globe. "Other" financial parties are what is meant by the word counterparty. The overseas jobs are being cut because there is less of the "sloshing" which in turn means less need for financial types in NY as well.

Did the article not say 30000 job cuts in finance and Securities firms in NYC?

Wall Street is shrinking because despite the Federal programs meant to beef up bank balance sheets and earnings, there are still enough counter vailing forces such as BASEL 3 and large liabilities forcing banks to shrink the balance sheet. You can't hire more people and enter new businesses when you are shrinking the capital base. Plus 2008 was only four years ago lots of people still don't trust Wall Street. And yes Europe is an issue. European banks serve as counter-parties represent exposure on the balance sheet and serve as customers, not conducive to business at all. I'd say Wall Street has one customer at the moment and his name is Ben.

True RS, but its more line Ben aids and abets WS

Or more specifically banks

Settle down folks. My statement was meant only as a point of fact: financial firms are hiring in compliance, Basel etc. I didn't state an opinion on the new regs or that "regs lead to long term growth" which is of course absurd hence my use of the word "ironic". Indeed I think 3Q earnings are going to be very disappointing for reasons cited above.

Brooks, what do you think he's doing when he announces a plan in advance to buy mortgages. He's telegraphing to the banks what to buy first so they can front run.

Did I not sat he was helping the banks?

brooks2=huntersburg

poor pathetic sad columbiacounty

* [Whitney: Up to 100,000 Layoffs On the Way ]

http://www.bloomberg.com/video/whitney-up-to-100-000-layoffs-on-the-way-GwondGw2RCKQIvobAX7c0Q.html

"Ironically, the reforms are creating these jobs". FAIL.

I said that a year ago, LICC.

But here's an article from today:

http://www.cnbc.com/id/49235794

I'm still waiting on Brooksie to tell us which one of the regulations he's railing about.

okay, stevie, i'll bite. How about the CFTC's position limit rules coming out of dodd frank?? and don't go for the easy answer about speculation....let financeguy craft a 100 page thesis on the merits of the CFTC's position. you asked for one example, so there it is....

bueller?

The Volcker Rule is a mess. The regulators can't figure out what is a prop trade and what is selling from inventory to make a market.

You have no idea what you just started.

No, LICC is basically right - the Volcker Rule in principle is excellent because it separates government guaranteed deposits from trading and speculation. However, how they wrote it is a mess.

stevie, are you now agreeing that some of these proposed or actual rules are problematic? you asked for one, you got two and there are many more examples...

I agree the Volcker rule is a mess, principally because the banks and their lobbyists were able to turn a congress. The CFTC just had a very good rule about commodity position limits because it didn't follow a rule put in at the requests of lobbyists working for banks. So many exceptions have been put in place that the rule is now a mess.

I agree with Steve. The principle of not allowing banks to trade for themselves when they have taxpayer protection is good. But distinguishing a trade for the balance sheet from holding inventory for dealer activity is too difficult and burdensome. The best way to limit a bank's risk is through capital requirements.

And Congress should have merged the SEC and the CFTC when it had the chance. The CFTC adding duplicative regulations on mutual funds is doing more harm than good.

rs, that "very good rule" by the CFTC on position limits was so good it was just vacated by the courts. i was hoping stevie would bite on that one....

and congress didnt merge the SEC and CFTC cause whats better than having one big bungling bloated bureaucratic agency when you can have two!

rangersfan, how long until you actually say something interesting? either you come on here with your crickets and Bueller, or you say things that no one gives a crap about other than SE's most hardcore boring people.

hb, go troll another thread. this is about fifteen levels above your ability to process information. stick with pulling things out from your a$$ that people have posted on three years ago so you can try and torment them. won't work with me, asswipe. now maybe you come back with another nom-de-plume? pathetic thing.

Hb with the slap shot

Goal!

>hb, go troll another thread. this is about fifteen levels above your ability to process information. stick with pulling things out from your a$$ that people have posted on three years ago so you can try and torment them. won't work with me, asswipe. now maybe you come back with another nom-de-plume? pathetic thing.

that's the best you got? throw in a little French, and your Stella Artois is better than Miller Lite?
What a jackass.

but it sums up your pathetic existence pretty good, ya little weasel.

is "ya" the way that interesting people write "you"?

not sure, just naturally rolled off the keyboard and seemed remarkably appropriate for ya little weasel.

you already did the "ya little weasel" thing just one comment back.