Wednesday, September 18, 2019

That escalated quickly.

Does anyone have any speculation of why all of a sudden people need money causing the government to inject money into the system?

I am not sure of the reason, but one thing that caught my eye  a couple of weeks ago was Charles Schwab laying off 600 people in Singapore and closing operations there.

Charles Schwab Layoffs 2019: 600 Lose Jobs As Fed Rate Cut Hits Bank's Profit.

"Badly battered by shrinking interest revenues, The Charles Schwab Corporation will fire 600 of its staff in a bid to ensure its survival amid an unwanted environment of low interest rates. The firings come ahead of a forthcoming interest hike next week that will place even more pressure on the bank and brokerage firm to further cut costs.

Those being laid-off represent three percent of the bank’s workforce. Employees to be fired come from all staffing grades, as well as organizations and locations across Schwab.

Schwab said the layoffs are part of an effort to streamline mounting expenses as net interest revenue remains under increasing pressure from low interest rates."

Then, this week, the rumor mill exploded with layoffs all over regarding Schwab in the US offices. The article goes on to say:

"Like Schwab, other big banks are getting badly burned by low interest rates. Citigroup and Wells Fargo last week both admitted they also expect lower interest income due to the economic growth slowdown, as well Fed cuts. There might be two more Fed cuts by 2020.

Analysts said the mass layoff is an attempt by Schwab to buy time."

Schwab is obviously a very large brokerage house,  so they fact they are laying people off really gets ones attention.

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