Banks Eat Their Young

(AP) Bank of New York Mellon Corp. said Wed (8-10-11) that it will cut about 1500 jobs, or 3 percent of its work force.The banking industry resorted to layoffs during 2008 and 2009, as the financial crisis pummeled earnings and banks took government bailouts. 2010 provided some relief, and banks even hired back some laid-off workers. But banks have been cutting jobs again in recent months. Goldman Sachs and State Street, among others, announced last week that they would also lay off about 3 percent of their workforces. What makes these cuts different from the layoffs of 2008 and 2009 is that they're coming at a time when many banks are actually posting improved profits.