Major banks posted better than expected results in the second quarter and plan to carry that momentum into the job market. Even Citigroup and Bank of America, which have not repaid TARP funds, have added to their payrolls. Investment banking divisions especially have been filling posts in areas like fixed-income and commodities quickly, reports Elinor Comlay at Reuters. The larger banks have been losing employees to smaller firms during the recession. Those smaller firms did not receive TARP funds and need to limit pay as a result. However, few if any of the hires are coming from the ranks of the unemployed but instead from those who survived the cuts at other banks as each firm seeks to strengthen senior management. Although employment levels are unlikely to return to their 2007 levels, the switch from firing to hiring is a sign of a turnaround.
Major Banks Poaching Each Others’ Ranks
Banks are showing signs of improvement as they hire new employees.
August 11, 2009