This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Banks With Looming Layoffs

NEW YORK ( TheStreet) -- In the past few weeks many banks have started to conduct layoffs as part of restructurings or mergers.

In addition, after hiring sprees in 2010 many investment banks pulled back and are focusing on bringing in top tier talent and cutting low performers. For example, investment banks like Jefferies and Morgan Stanley (MS - Get Report), have both announced that they are looking to attract more experienced talent by paying more in compensation.

Banks are also cutting employees to meet regulatory requirements, while many banks are trimming down employees in certain businesses and building in others. Banks that we predicted would conduct layoffs in February have already announced and are continuing to do further restructuring of their business.

But a new round of cost cutting is hitting the banking industry.

Wells Fargo (WFC - Get Report) announced that it is laying off 1,900 employees in its home mortgage division nationwide. The termination notices were sent to employees on in mid-March. Many of the employees that were laid off were subsequently rehired as temporary employees last year, according to an article in the Killeen Daily Herald, a Texas-based newspaper.

Employees in North and Central Texas, Iowa, California and North Carolina. Those employees will lose their jobs with in 60 days.

"While we may reduce staff in some areas, we are also hiring in other areas. For example, in our annual report, it said we had 6,500 open jobs at the end of 2010. We are hiring," said a Wells Fargo spokesperson.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Wells Fargo is one of several mortgage lenders that is under investigation by regulators for its handling of mortgage put-backs. So it is possible there could be further layoffs in its mortgage division.

Wilmington Trust (WL) shareholders approved the $351 million merger with M&T Bank (MTB - Get Report) on March 22. Federal regulators are expected to approve the deal in a couple of months.

Once the deal is give the go ahead, M&T Bank will lay off 700 employees from Wilmington Trust. Layoff notices are expected to be sent out in the late summer, according to The Wall Street Journal The employees that will be laid off will mostly be employees that have back office jobs or corporate positions.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

M&T plans to spend about $23 million on severance payments, said spokesman Mike Zabel. Even with layoffs from the merger looming, M&T Bank is hiring in states such as Delaware, according to WDEL, a news radio show in Delaware.

Bank of America (BAC - Get Report) plans on cutting 100 jobs in its consumer and small business units as a result of declining revenues from debit card overdraft and interchange fees. Many employees that are laid off will be offered positions within other branches, according to The St. Louis Business Journal.

The layoffs were part of the consumer business' overall restructuring. Bank of America has said the law may cost them $1.3 billion in losses due to the Durbin amendment. The cuts were spread across the country and represent a small percentage of the division's 95,000 workers, according to The Wall Street Journal.

Even thought Bank of America is conducting layoffs, it is also hiring in other areas. For instance the bank announced it would be hiring 250 people in call centers for home loans and insurance and consumer and small-business banking in Brea, California, according to the Orange Country Register. In addition, the bank is hiring over a thousand small business bankers nationwide.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.36 -2.78%
GS $163.14 -1.83%
MS $26.89 -1.36%
MTB $116.69 -1.90%
WFC $50.00 -1.17%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs