Tuesday, August 5, 2008
By Whitney’s reckoning, banks have laid off about 7% of their employees; she thinks the cuts need to reach 25%.
Whitney: Credit crunch far from over
Whitney, who audaciously - and correctly - predicted last October that Citigroup (C, Fortune 500) would have to cut its dividend, tells the magazine that banks in general today are still facing much bigger credit losses than what they've reported so far. The Oppenheimer & Co. analyst warned last year - and continues to warn today - that the "incestuous" relationship between the banks and the credit-rating agencies during the real estate bubble will have a long-lasting impact on banks' ability to recover.
Posted by malct @ 05:01 PM (392 views)
One thought on “By Whitney’s reckoning, banks have laid off about 7% of their employees; she thinks the cuts need to reach 25%.”
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Iain Greig says:
In my naivity I thought banks took depositors money and loaned it out to safe credit worthy people and institutions. Since the bank maneger turned into a person in a far away call center speaking an abortion masquerading as incomprehensible english these safe lending practises seem to have gone off down the road with the tooth fairy, Surprisingly in this brave new world, run by fulltime career politicians that behave like foxes in the hen run, the consequence is that the entire system is unravelling with the unstoppable momentum of a chain reaction. A gold star to whoever can predict the final destination.