Posted by: Chris Rooney | May 08, 2012
It’s a familiar story in the financial services industry. The market is down, profits are down, and a major bank announces it will take out a billion dollars in costs by restructuring the business and reducing staff by a few thousand people. The stock market responds positively to such announcements, but the truth is that such cuts simply return a bank to its status quo. As the market or the economy rebounds, staff levels inch back up and the bank’s cost basis returns to previous levels.