Jan
01
Wall Street’s Trump Bonanza Won’t Stop Job Cuts at Banks in ’17
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Even if profits surge, analysts say banks will keep automating
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‘It’s hard for me to imagine a job expansion in finance’
Bank stocks are on a tear after Donald Trump’s victory drove up expectations for the industry’s profits. Here’s the catch for many people working there: Holding onto their jobs won’t be any easier.
While lower taxes, higher interest rates and lighter regulation under Trump could help boost U.S. banks’ earnings by a median 22 percent in 2018, firms will keep chipping away at costs by using technology to replace traders and branches, analysts at Morgan Stanley said this month. And though rising rates may fatten lenders’ profit margins, they can slow demand for new mortgages and corporate debt issuance. Again, that means fewer staff needed…
Wall Street’s Trump Bonanza Won’t Stop Job Cuts at Banks in ’17
