November 4, 2009 CitiGroup announced that their banks received billions of dollars in bailout money the previous year. The bailout money caused over 175 jobs to be lost. Around 100 positions were cut so that the banks could concentrate on the support functions, finance, marketing, etc.
Another 75 business cuts occurred for financial advisers. What this means is that over 100,000 jobs were taking from the bankers within the United States alone. Everyone involved experienced some difficult times and there nothing in the news that tells us that anything will improve shortly.
However new reports show that the bankers are overhauling their models in the organization and industry to prepare for the recent economical changes and regulatory conditions that are up and coming. Card providers should start to embrace themselves for the new curbs in federal regulations on marketing practices and interest rates. Based on the new Act signed by Barack Obama May 22, those new changes are in effect now.
According to the latest news over 28 billion dollars was lost last year, thus the banks are working to try to save money on the personnel expenses, but how is it affected the people who are now out of work?
