Aug 21, 2007

Fifth Third Eliminating 650 Jobs

Fifth Third Bankcorp are giving 400 staffers their notice and are eliminating another 250 positions through attrition. The banking industry have been on a lay off tear lately but the 3% trimming of their 22,000 staff appears to be just what they have announced; an attempt to control expenses in the face of a tepid market.

Being from the Cleveland area, Fifth Third was always the preferred source for home mortgages because they held and serviced all their own paper. If that is still the case, then they would have little exposure to the current problems hitting the mortgage market. Even with Ohio experiencing high foreclosures, their
recent acquisition of First Charter shows a conservative approach towards expansion by limiting their exposure to a tumultuous Atlanta market.