Whitney: IBD Needs Radical DownsizingST
Meredith Whitney took to BloombergTV yesterday to spread a little more sunshine about the banking sector, specifically investment banking. This might be the most important thing you guys watch all week. She thinks we see at least 50,000 more banking jobs lost - the majority in. Her reasoning? The tide has gone out, and with it all the investment banking profits. She has a stark warning for those bankers who've been laid off and are holding out for another $300,000-a-year job to replace the one they lost: "Take what you can get...and re-calibrate your expectations." It's not even a matter of conjecture anymore; we're watching it happen before our eyes with new rounds of layoffs and rock bottom bonuses. Don't shoot the messenger.