Banks Got A $21 Billion Tax Windfall... Then Fired Thousands And Rewarded Themselves

Zero Hedge | 2/5/2019 | Staff
maddyb7 (Posted by) Level 3
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Bloomberg's analysis is based on the financial results and commentary from 23 of the most important US banks to the nation's economy, according to the Federal Reserve. The tax windfall was not unexpected, as banks had been paying higher than average effective tax rates vs. non-financial companies.

The financial industry promised to pass the savings along to employees, small businesses and communities in need of financial help. Instead, the 23 firms boosted dividends and stock buybacks 23% and slashed thousands of jobs with a few signaling that more layoffs are in store.

Bloomberg - Bank - Employees - Customers - Tax

Bloomberg breaks down exactly how bank employees and customers fared following the tax windfall.

Employees were a mixed bag. Of bank employees who kept their jobs, some got bonuses - such as 145,000 Bank of America workers who received $1,000 bonuses last year. Wells Fargo rewarded their poorest employees by boosting minimum wage to $15 an hour.

Wells - Fargo - Bank - America - Jobs

That said, Wells Fargo and Bank of America slashed nearly 4,900 and 4,000 jobs last year - only to be outdone by Citigroup's 5,000 job cuts. While the banks did not provide regional breakdowns, press reports reveal that at least some of the cuts were international.

More cuts are on the horizon as well. State Street Corp announced in January that it will be laying off 1,500 people thanks to automation, while Citigroup may cut thousands of staff from their technology and operations areas in the coming years.

Customers - Platforms - Technologies - Banking - Needs

As customers are being shifted to mobile platforms and new technologies to handle banking needs, the many banks have announced increased investments in automation.

Those employees who weren't fired received an average raise of 3.6% last year among the 23 banks surveyed. Bank of America, for example, boosted its bonuses last year to encompass more employees. That said, "the ratio of personnel costs...
(Excerpt) Read more at: Zero Hedge
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