Collapse: Western Banks Combined Cut 60,000 Workers In 2023, Worst Since 2008

The following report is by ZeroHedge:

The collapse of three US regional banks – First Republic Bank, Silicon Valley Bank, and Signature Bank – marked some of the largest failures in the banking system since 2008. Central banks contained the “mini-crisis” earlier this year with forced interventions and the mega-merger of Credit Suisse and UBS. Despite the interventions, global banks still axed the most jobs since the global financial crisis. 

A new report from the Financial Times shows twenty of the world’s largest banks slashed 61,905 jobs in 2023, a move to protect profit margins in a period of high interest rates amid a slump in dealmaking and equity and debt sales. This compared with the 140,000 lost during the GFC of 2007-08.

There is no stability, no investment, no growth in most banks — and there are likely to be more job cuts.

said Lee Thacker, owner of financial services headhunting firm Silvermine Partners. 

FT noted that corporate disclosure data and its independent reporting did not include smaller regional bank cuts, indicating total job loss could be much higher. 

At least half of the job cuts came from Wall Street lenders struggling with Western central banks’ most aggressive interest rate hikes in a generation. 

The most significant cut of any single bank was at Switzerland’s UBS.

Morgan Stanley reduced jobs by 4,800, Bank of America by 4,000, Goldman Sachs by 3,200, and JPMorgan Chase by 1,000. As a whole, Wall Street cut 30,000 workers this year. 

The revenues aren’t there, so this is partly a response to overexpansion. But there is also a simpler explanation: political cost-cutting.

said Thacker. 

Gaurav Arora, global head of competitor analytics at Coalition, warned:

We expect full-year 2024 to be a continuation of the story of 2023.

Arora’s view of further turmoil aligns with our two recent notes: Banks’ Usage Of The Fed’s Bailout Facility Soars To New Record High and Large Bank Deposits Rise As Money-Market Outflows Accelerate, Small Banks Still Stressed. 

“We see banks getting more conservative,” Arora concluded. 

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AUTHOR COMMENTARY

This is, once again, a very important canary in the coalmine that cannot be ignored. The wave bank of failures and turbulence seen in 2023 will not compare to that of 2024, in my opinion. Already in my area I have seen bank hours really get slashed, and a few less employees than usual. This report confirms what I personally have seen here in my Northern Indiana town, which is fairly affluent and supposedly a well-off area.

I have continuously warned that the banks are insolvent and sitting on gargantuan amounts of bad debt and loans; and in 2024 it will come time to pay the piper, as the banks will increasingly be faced with a collapsing real estate market, people defaulting on their auto loans, people defaulting and foreclosing on their homes, an eroding dollar and higher inflation, and so forth. Friend, you are going to see a banking bust the likes of which has never been seen before, and it will destroy the Western nations, on top of all of the other problems we are facing and can expect in the cards.

SEE: Collapse: Accredited Weiss Research Warns 5,274 US Banks Have The Potential To Fail, As More Bank’s Ratings Are Downgraded

Read-up on the impending collapse here. The fake pyramid/Ponzi scheme that is the U.S. and Western economies, propped-up on debt, fiat, and the sheeple buying into the FOMO is over. All pyramid and multi-level marketing scams require the bottom, the bulk of people involved, to stay invested and keep buying-in. But since the bottom is falling out, the whole scheme will topple in on itself.

The rich man’s wealth is his strong city: the destruction of the poor is their poverty.

Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase.

Proverbs 10:15, 13:11

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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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