Banks examine their costs, look for efficiency

Banks will be scrutinizing their costs, said the new chief of Wells Fargo Minnesota.

Corporate concerns about expenses often translate to layoffs. Earlier this year Wells Fargo announced cuts of 1,900 jobs in its mortgage business, nearly 300 of them in the Twin Cities. The bank employs about 20,000 people in Minnesota.

New CEO David Kvamme said the bank's Project Compass cost-cutting effort is to provide services as efficiently as possible.

"It's been in the news that other banks are taking similar looks at their expenses," Kvamme "I think you'll see all banks looking closely at their efficiencies and Wells Fargo, certainly, is going to do that."

Kwamme is also the new regional president for the Minnesota Great Lakes region, covering six states between Minnesota and Ohio.

Bank of America has announced 7,000 job cuts this year. Banks are being squeezed as new regulations cap fee revenue. However, low interest rates are creating something of a boom in mortgage re-financings and temporary help agencies say there's growing demand for workers in loan processing.

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