Banks Killing Jobs story republished with polling problem addressed.NEW YORK ( TheStreet) -- Bank of America ( BAC) has grabbed headlines lately for a host of reasons, but one of the most attention-grabbing announcements the bank has made of late was a decision to eliminate 30,000 jobs over the next few years.
"I believe the Bank of America's strategic moves today are designed to prevent what Kodak is going through now, teetering on collapse and a complete redeployment of its assets to higher valued uses. Kodak responded slowly to the shift in demand away from 35 mm film. Bank of America is in the process of trying to pre-empt a loss in market share, by shifting away from businesses that look less promising to focus on more profitable lines of business. The natural evolution of business is to create value, encourage competition, and enable the movement of ideas and labor to their highest valued use. If Bank of America did not take these steps, it could end up like Kodak," Jarrell wrote via email. Whether cutting jobs now is the right or wrong thing for the labor market in the long run, critics of the banks have pointed to their lack of lending to small businesses as a signal that the banks are not creating jobs they way they might. An analysis of Treasury Department data by The Wall Street Journal found that over half of $4 billion doled out to banks by the Treasury to spur small business lending was instead used to pay back TARP. Meanwhile, banks have been lobbying against legislation that would increase small business lending by credit unions, according to Ryan Donovan, a lobbyist with Credit Union National Association (CUNA). The trade group argues the Small Business Enhancement Act, which would lift caps on the amount of business lending permitted by credit unions, would create 140,000 new jobs. What do you think? Are banks job creators or job killers?
-- Written by Dan Freed in New York.