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Bank of America to cut 30,000 jobs
Originally posted by 5corpio
Bank of America will cut 30,000 jobs as part of the biggest cost-saving plan undertaken by any bank since the height of the financial crisis.
America's biggest lender is taking the axe to its retail banking business, which includes its mortgage and credit card divisions. Brian Moynihan, the bank's embattled chief executive, warned on Monday that he and senior executives will turn their focus next month to its investment bank.
Mr Moynihan is under intensifying pressure to fix a bank that emerged from the crisis dogged by its decision to make two major acquisitions during it. The purchase of Countrywide, once America's biggest mortgage lender, has left it facing a wave of lawsuits that accuse the bank of mis-selling mortgages. The slowing US economy, meanwhile, has hit revenues at Merrill Lynch, which Bank of America rescued in September 2008. This has left Bank of America's share price as the worst-performing of any big US bank this year, when the competition for the unwanted title has been intense. Bank of America's top brass will be hoping the cost-saving plan - known as Project New BAC - will help revive a share price that has fallen more than 50pc so far this year. Shares in the bank were down 0.7pc at $6.97 in early afternoon trading in New York.
"We don't have to be the biggest company out there, we have to be the best," Mr Moynihan told a conference in New York. "We can get out of things we don't need to do, make the company leaner, more straightforward, more driven." The project, which is named after the ticker symbol the bank employs on the New York Stock Exchange, is designed to cut the...Read more on todays story----> Bank of America to cut 30,000 jobs
America's biggest lender is taking the axe to its retail banking business, which includes its mortgage and credit card divisions. Brian Moynihan, the bank's embattled chief executive, warned on Monday that he and senior executives will turn their focus next month to its investment bank.
Mr Moynihan is under intensifying pressure to fix a bank that emerged from the crisis dogged by its decision to make two major acquisitions during it. The purchase of Countrywide, once America's biggest mortgage lender, has left it facing a wave of lawsuits that accuse the bank of mis-selling mortgages. The slowing US economy, meanwhile, has hit revenues at Merrill Lynch, which Bank of America rescued in September 2008. This has left Bank of America's share price as the worst-performing of any big US bank this year, when the competition for the unwanted title has been intense. Bank of America's top brass will be hoping the cost-saving plan - known as Project New BAC - will help revive a share price that has fallen more than 50pc so far this year. Shares in the bank were down 0.7pc at $6.97 in early afternoon trading in New York.
"We don't have to be the biggest company out there, we have to be the best," Mr Moynihan told a conference in New York. "We can get out of things we don't need to do, make the company leaner, more straightforward, more driven." The project, which is named after the ticker symbol the bank employs on the New York Stock Exchange, is designed to cut the...Read more on todays story----> Bank of America to cut 30,000 jobs