Larry McDonald, president and founder of the McDonald Advisory Group and author of the New York Times bestseller A Colossal Failure of Common Sense – the Inside Story of the Collapse of Lehman Brothers, thinks he can paint a clear picture of the reasons behind the wave of Wall Street layoffs that started recently.He identifies two big reasons for the layoffs:
- Volumes are down = fewer bonds and stocks to trade = fewer traders
- Regulations are requiring deleveraging, so there’s less profitability
- Salaries are now higher than bonuses
Watch below as McDonald explains how current events and Dodd-Frank have bred these scale backs and tells us whether they will spread beyond the financial sector.
Produced By: Kamelia Angelova and Simone Foxman