RJ and Makay

Things have been looking up economically, but the road to recovery continues to be bumpy. In the face of slower revenue growth, increased regulation, and debt problems, many financial services firms are finding a need to cut costs. And, unfortunately, that means layoffs.

Among the companies that are expected to announce layoffs or have already done so are Wells Fargo, American Express, PNC, Fifth Third Bancorp, Synovus Financial, and State Street. In all cases, job cuts are expected to be in the hundreds or even thousands, resulting in expense reductions of tens to hundreds of millions of dollars. The goal, say analysts, is to reduce operating costs by as much as 20% over the next three years.

SNL Financial’s quarterly release of the 50 biggest banks and thrifts in the U.S. by assets revealed just what a takeover can do with to a bank ranking. First Niagara Financial Group’s acquisition of NewAlliance Bancshares, Inc., worth $1.15  billion, propelled the regional bank up from number 46 to number 38 among the largest 50. First Niagara’s acquisition of NewAlliance will increase its balance sheet by 42%, plus expands its presence into Connecticut and Massachusetts.  Currently, First Niagara Financial serves upstate New York and western and eastern Pennsylvania. The deal is expected to close in the second quarter of 2011.