Job cuts on Wall Street will be a “continued slow bleed” after the industry trimmed hundreds of thousands of positions in recent years, said Meredith Whitney, a banking analyst and chief executive officer of Meredith Whitney Advisory Group.
“There’s growth out there, but for the majority of financials it’s an anemic growth environment,” Whitney told Willow Bay today in a Bloomberg Television interview at the Milken Institute conference in Los Angeles. “What you’re seeing is stealth cuts.”
Whitney said she sees the “most upside” for Bank of America Corp., which started a cost-reduction process in 2010, and added that Citigroup Inc. CEO Michael Corbat is “doing what should be done and identifying areas that should be cut.”
First-quarter results showed little or no revenue growth for the biggest U.S. banks, Whitney said.
“What you did see was a focus on eking out the bottom line through cost cuts,” she said. “This isn’t sexy stuff.”
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