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BREAKING NEWS! Wall Street Jobs Plunge as Profits Soar

Young_Chitlin Members Posts: 23,852 ✭✭✭✭✭
By Max Raskin & Ilan Kolet

Finding work on Wall Street is getting tougher as algorithms replace traders.

“The desire is to drive the cost of executing a trade to its lowest point -- this means automating the system and getting rid of the traders,” Richard Bove, a bank analyst with Rafferty Capital Markets LLC, said in a telephone interview.

“All they do today is hit buttons on computer screens. Twenty-five years ago they would be calling their buddies at different firms. It was a highly labor intensive effort.”

New York’s “inhospitable” climate for commercial banks, along with falling demand for financial services and increasing automation is driving the decline in jobs, Bove said.

U.S. banks had $141.3 billion in net income last year, the second-best on record after the $145.3 billion reported in 2006, according to the Federal Deposit Insurance Corp.

Citigroup Chief Executive Officer Michael Corbat announced plans in December to eliminate 11,000 jobs as part of a range of cost-cuts that will save about $900 million this year. The dismissals added to 5,000 announced by former CEO Vikram Pandit the previous January.

Bank of America Corp. has announced plans to cut at least 30,000 jobs to help shave $8 billion per year in annual costs.