Larry McDonald: This Is Why You're Getting Laid Off

Larry McDonald

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

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