Road Ahead Tougher For Banking Industry

After a rough year, the banking industry appears headed for another in 2007. Business is likely to be a little tougher, and maybe even more competitive.

"Banks had to scratch and claw their way to meet their goals" in 2006, said Sherief Meleis, managing director at bank consulting firm Novantas. "Next year is going to be just as crazy."

Analysts expect banks’ earnings to weaken further. To offset some of the losses, they expect more takeovers, but not necessarily banks buying banks. Instead, banks and other financial service providers are likely to combine.

Read the rest of the story on CBS, click here.

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