If you consider HTM assets to be paper losses, you are no better than the Seeking Alpha clowns that want more cost cuts in order to cover losses from selling these assets, and then try to realize the "opportunity profits" of selling and reinvesting the capital into higher yielding bonds. They are calling for layoffs in order to cover the point in time losses of selling HTM assets.
Don't be like them.
@1jag+1p9tWRTW
Massive cope. You do realize any Treasuries purchased and held from Dec 2008-Mar 2022 are essentially worthless since rates started normalizing last year, right? ALL the banks are in trouble.
https://fred.stlouisfed.org/series/FEDFUNDS
While the held to bond securities are not technically a loss until liquidated, this does impact the overall performance and ability of the bank as a whole.
Since they need to be held until possibly term, the bank is going to hold employees' bonus, merit increases and promotion opportunities hostage while we wait. The other big banks stock prices are increasing while ours is stagnant
Like it or not, this decision to carry this much over is a mitigated risk that directly impacts the shareholders/employees
Keep in mind, stock price dragging directly impacts staff of retirement age. If you are younger, it's definitely time to buy 😉
The held to maturity securities are not a loss. They will hold them to maturity unless they are forced to sell. They will only be forced to sell if they need capital, which, if you read their earnings... they are not even close to needing capital. They are buying back shares still. Please stop spreading this nonsense.
This isn't news. They had a hiring freeze (whether they admit it or not) so people left and they didn't replace anyone. We have all seen our teams dwindling and work increasing. It has reached a point where if there were layoffs it would affect the everyday business of the bank. Too few to do too much as it is. Hiring freeze will probably last throughout first half of 2024 when you consider the economy/rates and all. Lateral internal move opportunities or shifting employees around only.
Nothing to see here. 7,500 jobs no severance. Bank of opportunity!!!! I loved Brian's response at the earnings call. So Brian we can't really look for jobs since there is a hiring freeze. Oh don't worry sweetheart you will be fine. Just make sure to update your resume when you go back to your desk and enroll in our over priced benefits.
LOL, $48.1B pretax income minus $95.9B loss on "held to maturity securities" is NEGATIVE $47.8B. I thought banks could do math!? LOL!
Are call centers going to be affected? Seems like over time we would be since banking has been going digital..more so now than before.
More to come
And I assume this does not account for all the contractors let go or being let go by year end within technology. Since we only made $7 billion last quarter we were all told we had to pick up extra work since reductions occurred.