Daily News: October 9, 2012

McKinsey: Banks Must Cut Deeper to Help Stock Prices

Bloomberg noted in an article on October 9, 2012 that according to an annual review of the industry by McKinsey & Co., banks must make deeper and more sweeping cost reductions if they want to restore profitability levels that are acceptable to investors.

Bloomberg quoted a director of the consulting firm’s North American banking practice as saying in an interview, “Banks have done quite a lot on cost-cutting but frankly the environment has deteriorated over the last year because of economic weakness.”

To read the Bloomberg story, click here.