Wednesday, September 8, 2010


BLOOMBERG NEWS---Securities firms around the world will cut as many as 80,000 jobs in the next 18 months as revenue growth begins to slow, said Meredith Whitney, the former Oppenheimer & Co. analyst who now runs her own firm.
The reductions, about 10 percent of current levels, will come after 2010 compensation payments, Whitney, 40, said in a report dated Aug. 31 and obtained by Bloomberg News today. The industry’s payouts will be “down dramatically,” said Whitney, who started New York-based Meredith Whitney Group after correctly predicting Citigroup Inc.’s dividend cut in 2007.
Lets see...massive retail withdrawals from the equity capital markets, a bulge bracket race to the bottom in underwriting fee competition, securitization? what securitization, anemic M&A deal flow, volatile trading markets, jettisoned Prop desks and underwater hedge funds, a global headcount frenzy to fill the Lehman void that never actually existed and to service the Chinese and Indians who hate paying fees to anyone, tighter regulatory hoops and capital rations...and you thought the banking business looked abysmal before Lehman went under.

I seem to recall saying this was in the works.

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