Bank Layoff Storm

Bank Layoff Storm

Beginning in July 2019, a wave of layoffs swept Germany and Italy, and even reached North America. Who is the hand behind?

1 Negative Interest Rate and It’s Negative Impact

Decision makers of European Central Bank believed that negative interest will be a booster for Euro area countries’ economy, since any money deposited in the bank will be charged for certain interest,there would be more direct investments in the market. This policy had been implemented since 2014. However, most people understood basic interest theory, eventually, they regarded this policy as a symbol of gloomy economic future, the confidence of market was undermined.

Before we see the positive effects of this controversial policy, bad news came first. Winter came to bank industry. Negative interest seriously reduced the profit of most commercial banks, a large number of bank staffs were laid off.

Situations were worse in the United Kingdom and Germany. More than 86% bank layoffs were from Eurozone countries which had implemented negative rate policy, according to Bloomberg.

In order to reduce the unexpected impact of negative interest rates on banks, the European Central Bank announced a tiered interest rate system to cut the cost for certain commercial banks under its system. However, the effect of this new policy was minimal.

Even worse, the layoff hurricane landed in Japan. Mizuho Financial Group was planning to reduce 19,000 employees by end of 2026, followed by Sumitomo Mitsui Financial Group with a number of 5,000 layoffs this year, and Mitsubishi UFJ Bank with a number of 10,000, by end of 2023.

2 Get Ready for Uncertainty

Morgan Stanley, unlike his European counterparts, was not bothered by negative rate policy. It had a bumper year with stock risen more than 15%, far more than expected.

Unfortunately, on 10th of December, Morgan Stanley announced that they would cut off 1,500 employees, which is 2.5% of its total number of employees worldwide. Ironically, as Nasdaq News reported on 13, December,Moody‘s just affirmed   Morgan Stanley’s MS issuer as well as senior unsecured debt rating to A3, to reflect their outstanding financial performance.

Although the latest round of job cut was mainly restricted to technical department, to facilitate its artificial and online business, a general goal to deal with upcoming profit shrink and higher credit spread is a more acceptable explanation for Morgan Stanley’s big disarmament.

The British “Financial Times” believed that was Morgan Stanley’s “planning” for market uncertainty next year.

Trade and political uncertainty, slowing economic growth as well as the government reactions are the major concerns for James Gorman, CEO of Morgan Stanley. He expressed his concens were right after the third quarter financial report was released.

Risk factors such as global trade tensions are huge blow to confidence of enterprises and investors, dragging the economic more. Jamie Dimon, Chairman and Chief Executive Officer of JP Morgan Chase Group, also told the International Financial News reporter, these were his major concerns at this moment. Morgan Stanley was not the only one feeling the market uncertainty.



Will refinancing help you overcome your debt?

With interest lows at an all-time low, it could really be a great time to get out of debt. A low interest rate might be terrible for people looking to save, but it can be a great boost for people in debt. People with high interest debt may benefit from refinancing their old debt and locking in new lower rates for cost saving. Considering the low level of the rates, refinancing might be a better move now than it has been before.

If you are in financial trouble, you should follow the strategies and guidelines given in the following paragraphs. This can save you a lot of money

For newcomers to the financial sector, it is important to understand the main differences between loan refinancing and debt consolidation. Many people think that these two phrases have similar meanings, which is far from the truth. Loan refinancing is when you end an agreement with a loan provider and initiate a whole new set of terms and conditions. In contrast, debt liquidation is a technical term for the process of making a new loan to repay another loan.


1. When mortgage rates are low, refinancing can help you get better rates and reduce costs in the long run.

2. Take out a large loan to settle a few small loans so that you can make a one-time monthly repayment instead of various small loans, making your life much easier.

3. In some cases, loan consolidation and refinancing can also help you significantly reduce your monthly repayments.


Refinancing and integration may seem like advantageous options, but they have some downsides that you need to consider.

1. There are significant costs associated with loan refinancing. Banks usually let debtors pay for withdrawals at an early stage. In addition, you must pay for the establishment and maintenance of the new loan. In terms of currency, refinancing does more harm than good.

2.Banking institutions try to take advantage of those facing financial problems. Individuals seeking mergers or refinancing often end up paying huge sums of money as hidden costs.

Hopefully, these pointers will help you decide whether loan consolidation is a good solution.

Everything you need to know to get the right car loan

Cars are a convenient mode of transportation. If you are unable to afford a new or used one from your savings, you could consider taking up a financing option to help mitigate the costs. Car loans are personal loan products that are designed to help borrowers afford a vehicle, with repayments made in installments over time.

There are a variety of lenders who will offer car loans, including credit unions and banks. Like any other loan product, it is important to carry out thorough market research before applying for financing.

1.Ignore online lenders and not explore all your options

Although it may seem convenient to choose a dealer financing option, it is important to remember that you have more options! You can consider getting advance approval from a bank, credit union, or online lender. It is wrong to ignore online lenders, thinking that they are very helpful and a good choice when obtaining car loans. Their interest rates will be much lower and they will quote you faster than banks, making the shopping experience simpler and more flexible. This saves time and money.

2.No idea in advance how much you can afford

Ask yourself: How much deposit can I pay? How much can I spend on a car every month?

Answer these questions honestly and avoid putting yourself in a state of restraint after making monthly payments. Facing your financial situation ahead of time will allow you to focus on a number, so you will not be distracted by the myriad of confusion that dealers can bring you.

3. Pay more than necessary

It is recommended that you do some research in your field to ensure that you can get the best interest rates in the current market. With this information in hand and understanding your personal financial situation, you can make an informed choice when choosing a more convenient interest rate. Distributors often charge customers excessive annual rates. But back to error 2, you should explore all your options and find the transaction that best suits your needs and your financial situation. Higher interest rates may cause you to pay too much for a long-term car loan. Interest rates above 10% are definitely too high, and you should not choose this rate at this time. Instead, you can look at institutions with low-interest rates. Remember, you have a choice!

4. Choose a long-term car loan

This brings us back to our previous point. The longer your loan term, the more interest you will eventually pay. If you choose a shorter product with a loan term of 2-3 years, you may pay more per month than 5 to 6 years, but in the end, you will be able to leave some annual interest. It is recommended that if you can afford a monthly short-term financing loan, you should try to choose a short-term loan. With this choice, you can save thousands of dollars in interest!

This information should help you secure the right car loan deal.

Loan options which one can consider if they have bad credit

What is a credit score?
By convention, your mortgage lender will check your credit score, which will be calculated based on the information on your credit report. There are five factors affecting the score, each of which has a different proportion: repayment records account for 35%, arrears make use of credit lines for 30%, credit record durations account for 15%, and credit structures account for 10%. Credit accounts for 10%. Let us understand each of these factors one by one.

Repayment record
You should repay on time, as overdue repayments can have a significant impact on your credit score. For example: According to the US credit agency Equifax, a consumer has never missed a payment and holds a credit score of 780 (out of 850), but only has an overdue payment of 30 days, the credit score will be decreased by 90 to 110 points.

Debit-to-credit utilization ratio
Divide the amount of arrears accumulated on your credit card by the credit line of your total account. Credit experts recommend keeping this ratio at around 30%. If you overdraw your credit card every month, this can hurt your credit score.

Credit record duration
The longer the credit history, the higher the credit score. Credit expert Bill Hardekopf said that credit agencies look at the length of time you opened your earliest and latest accounts (for example: 2 years and 3 months) and the average length of time you opened an account across all accounts. Therefore, you should ensure that all accounts are enabled, even if the account balance is zero.

Credit mix
Holding different types of credit accounts such as credit cards, retail accounts, installment loans, car loans, and mortgages will help improve your credit score.

Add credit
Every time you apply for a new credit account, your credit will receive a “hard inquiry”, which will cause your credit score to decrease (usually 5 points). Therefore, we recommend not to open multiple credit accounts at the same time. Doing so will shorten the average opening time of your credit account and will damage your credit history.

Advice: Credit reports will not include a clear credit score. However, your credit card company is likely to give you a score for free, or you can contact a non-profit credit counselor to check your score.

What is the ideal credit score?
According to Fair Isaac Corporation, the founder of the widely used FICO credit score, the perfect credit score is 850, but only 0.5% of consumers can reach it. According to Chris Hauber, a mortgage originator at Hallmark Home Mortgage, a mortgage company in Denver, Colorado, as long as your credit score exceeds 740, you meet the standards of an ideal mortgage lender and can enjoy the best interest rate.

If your credit score is just over 700 points, you can still enjoy a more favorable interest rate. For regular loans, Hauber says, most lenders will require your credit score to be at least 620 points. Applicants must have a credit score of at least 660 to enjoy a relatively preferential interest rate, and they can apply for a loan without meeting additional requirements.

Can I apply for a loan without a credit history?
Ideally, you should open a credit card account at the age of 20 or build your credit by becoming an authorized user of your parents’ credit card in your teens. (Remember, the length of the credit history has a significant impact on how your credit score is calculated.) If you do not have any credit history, you can also obtain eligibility for a mortgage loan and start building a credit history through other methods. “Many lenders look at your monthly payment obligations, and those obligations don’t necessarily appear in your credit report,” Titsworth said. Experts point out that if you can repay car loans and pay rent on time, there will be a lot help. Often, these habits show whether you are a responsible credit user.

Bad credit is worse than no credit?
Some flaws in maintaining credit are inevitable. Maybe you occasionally forget the minimum repayment amount for a credit card bill, or you recently found an error in your credit report when discussing a loan option with a mortgage lender. In either case, you can take steps to remedy it. Titsworth states: “A bad credit record can be recovered if something happens.”

Is debt consolidation the right plan?

The truth about debt consolidation
Debt consolidation is nothing more than a lie for the truth is that debt is still there, and so is the habit that caused it, you just move it together. You can’t get out of debt in this way, just like you can’t get out of the cave by digging the bottom. Breaking out of debt is not quick or easy, but it is the first step to achieving sustained financial health.

Dave Ramsey’s trained financial consultant will never recommend debt consolidation to clients. Why? Because debt consolidation doesn’t work. Let’s find out why.

What is debt consolidation?

So what is debt consolidation? This simply means that you are taking a loan to pay off a large loan-or consolidating debt into one sum, people with high consumer debt are usually considered. But in most cases, debt has increased after someone has consolidated it. Why? They still don’t have a debt plan to pay cash and spend less money. They may not be saved for all ‘accidents’ and will eventually become debt. In other words, the good currency habits of giving up the loan and building wealth do not exist, and their behavior has not changed, so it is likely that they will return to debt.

Debt consolidation appears to be attractive because in most cases, the interest rate on some debt is lower and usually includes lower payments. However, in almost every case, payments are lower due to the extension of payments period, not because of less debt. So if you consolidate your debt, you may get lower payments, but pay more to the lender. To make matters worse, in some cases, interest rates are actually higher, meaning you pay more in the long run.

Debt Consolidation Example

Suppose you have $ 30,000 of unsecured debt including a two-year loan of $ 10,000 at 12% and a four-year loan of $ 20,000 at 10%. Your monthly payments for your first loan is $ 517 and your second loan is $ 583. This is a total payment of $ 1,100 per month. Debt consolidation companies say that they can reduce your payment to $ 640 per month and interest rates to 9% by negotiating with your creditors and merging the loans into one.

That sounds great, doesn’t it? Who doesn’t want to pay less $ 460 a month? But they don’t tell you that it now takes six years to repay the loan. This may not sound terrible until you realize how much extra payment is actually being made. Now you will pay $ 46,080 to repay the new loan, compared to the original loan of $ 40,392, even at an interest rate of 9%, which means you paid $ 5,688 for a “lower payment”. After all, this is not a good deal.
How you think about debt is a radical change. You get out of debt by changing your habits. Commit to a written debt plan and stick to it. Make more money and start paying off debts.

7 Tips to Help You Get Out of Debt

Everyone wants to succeed, everyone wants to get something in return, but things do not necessarily go in the direction we hope, some failures will make us have to owe debts, we can not be defeated by difficulties. We must face it positively, and then try to stand up as soon as possible to get rid of debt as soon as possible.

1. Correct your attitude and face it.

Although debt is entangled, and we may feel life is dark for a while, and there have no confidence and hope, but we must not be in a slump, we must believe in ourselves, actively fight the difficulties positively, and pay off the debt as soon as possible.

2. Get support from your family.

The family is your strongest backing. And can help you get out of debt faster.

3. Seek help from friends.

When you encounter difficulties, you will realize the importance of friends, and your friends will help you at such a moment so that you can get rid of the quagmire faster.

4. Know your strengths and weaknesses.

Debt is just like get a headache, and the road to repaying your debt is very difficult. Know your strengths and weaknesses, use your strengths to give full attention to your advantages, so that you can earn the money you earn, and then let yourself better get out of debt.

5. Find out why you failed

For all possible reasons, debts are not self-initiated, and those bad bets can be ruled out. If you find the reason for your failure, you can start again from the beginning and no longer make similar mistakes in the future.

6. Have a persistent determination

Getting rid of debt is a matter of tormenting your mind. You must have a persistent determination. Don’t always care how much debt you have. This will affect your progress. So with determination, you will pay back a little bit and eventually get rid of it.

7. Hard work and hard work

Don’t be opportunistic, work hard and work hard and don’t be resent, pay off your debts little by little, and only then can you get a little bit smoother. If you keep complaining, that is laborious and strenuous and no means.

Myths about debt you should stop following today

Five ways to get you out of debt:

1. You must have a stable job and work hard

Hard work can guarantee the source of income because the performance of debt must be solved by making money, it is the easiest way.

2. Consume rationally and control your demand for consuming

Control your demand for consuming, and control your consumption. Only rational consumption can broaden sources of income and reduce expenditure. Otherwise, earning $5,000 will only make you increase their debts, and many of them make their debts high because they can’t consume rationally.

3. Apply for large credit card bill installments under conditions

Take advantage of the credit card’s interest-free period, you can enjoy an interest-free period of 20-50 days. After the expiration, you can choose the minimum repayment amount or apply for the bill installment. Time to ease your repayment pressure. But you should pay attention to that credit card is a full double-edged sword, which can make your debt more horrible simultaneously.

4. Apply for a refinance with a bank or financial institution

The debt is relatively high and the repayment is stretched, so you can try to communicate with the loan platform in advance, apply for loan renewal, delay repayment, and strive for more time for your loan repayment. But many lenders will only allow borrowers to enter the collection stage if they receive repayments from borrowers.

5. Help from family and friends is very important

Confess to family and friends well, first find a way to get through the difficulties, and then try your best to make more money and repay the arrears as soon as possible. This is the most practical. Only your family will give you selfless help during your most difficult times. Many of you just feel embarrassed and avoid getting help from family members. So that their debts accumulate highly.

In the end, debts are not terrible. As long as you face the situation and work hard to make money, you can pay off your debts asap. However, We reminded you that when debts arise, don’t use the method of rob Peter to pay Paul. It is only a matter of time before this approach puts you into a dead end. Everyone has several hurdles in their lifetime. No one will have a smooth life in their entire lives. Only by stepping over the hurdles that we face, can we reap a beautiful future. Hope this information is helpful for you.