The Post says today:
Nearly four years after the financial crisis brought the industry to its knees, Wall Street is still retrenching. Banks are in the process of reviewing staffing levels and various businesses — a process that could result in tens of thousands of new layoffs, or a 15 percent reduction in industry head count in the coming months, sources said.
Senior bank executives said they are planning “multi-year” reductions in hard-hit businesses such as fixed-income desks, where bonds are traded. Historically low interest rates are making it tough for banks to generate income from underwriting new loans.
“You’re going to see firms cut capital-intensive businesses and trim down their balance sheets across the board,” said one senior banker.
As Michael Mayo, an outspoken bank analyst at CLSA, told The Post: “We expect revenue growth in the banking industry to be the worst its been since the Great Depression.”
Bove, on the other hand, having created a laundry list of problems (more lawsuits, Obama raising taxes on banks by $60bn, potential ratings cuts), nevertheless writes: "Through it all bank stocks go up. Something has clearly changed. It just may be that some investors are looking at the fundamentals for this group." Bove says bank valuations are "by any historical standard" too low.