Bleak year for banks: Three US regional bank collapses, global layoffs reach 61,905; Fed injects liquidity, signals impending recession risks.

by
Sharing is Caring!

Banks Terminate 60,000 Workers In One Of The Bleakest Years For The Industry Since 2008

The collapse of three US regional banks – First Republic Bank, Silicon Valley Bank, and Signature Bank – marked some of the largest failures in the banking system since 2008. Central banks contained the “mini-crisis” earlier this year with forced interventions and the mega-merger of Credit Suisse and UBS. Despite the interventions, global banks still axed the most jobs since the global financial crisis.

A new report from the Financial Times shows twenty of the world’s largest banks slashed 61,905 jobs in 2023, a move to protect profit margins in a period of high interest rates amid a slump in dealmaking and equity and debt sales. This compared with the 140,000 lost during the GFC of 2007-08.

“There is no stability, no investment, no growth in most banks — and there are likely to be more job cuts,” said Lee Thacker, owner of financial services headhunting firm Silvermine Partners. 

See also  How Does a Recession Actually Start?

See also  China is exploiting DEI to launder billions through western banks.