• Sharebar

I was reading an article in the WSJ titled " Wall Street Layoffs: Meredith Whitney’s Case for a Bloodbath". When I came across this paragraph it didnt make me feel warm and fuzzy considering I was wanting to break into the industry upon graduation. What are the thoughts from those in the industry regarding her prediction?

"Layoffs are coming. Layoffs are coming. Forget those high-profile hires , such as CIT Group’s former CEO Jeff Peak landing at Barclays or American International Group’s former chief Martin Sullivan going to the Willis Group, the legions of lower level traders, analysts and salespeople may be in for a rude awakening. Whitney expects lay offs of 40,000 to 50,000, or 5% to 10% of the U.S. securities industry."

Comments (10)

  • Revsly's picture

    We shall see.

    Jack: They’re all former investment bankers who were laid off from that economic crisis that Nancy Pelosi caused. They have zero real world skills, but God they work hard.
    -30 Rock

  • iBANKhard's picture

    Depends what kind of trading you're talking about. As other posters above said, prop trading is going away at many of the major banks.

    At my bank, we're increasing our sales force. You're going to see a growing trend in trading, where it's harder and harder to make a profit as commissions are getting squeezed. With commissions being cut bymany of the major institutional players, the only way banks can remain competitive and keep their revenues high is by hiring a larger sales force.

  • In reply to iBANKhard
    jtbbdxbnycmad's picture

    iBANKhard wrote:
    Depends what kind of trading you're talking about. As other posters above said, prop trading is going away at many of the major banks.

    At my bank, we're increasing our sales force. You're going to see a growing trend in trading, where it's harder and harder to make a profit as commissions are getting squeezed. With commissions being cut bymany of the major institutional players, the only way banks can remain competitive and keep their revenues high is by hiring a larger sales force.

    Hey, it makes sense that to rebuild a client-facing trading practice, you'd want to hire more brokers to bring in flow. Two questions:
    1) any more client-servicing traders being hired?
    2) how is it looking for MBAs? Or are only undergraduates and experienced hires getting love?