The nation's largest bank, Bank of America, plans to cut 3,500 jobs by September 30th. Sounds like a ton of jobs right? Well, it is, but shockingly,
This set of layoffs follow a string of other layoffs, including 2,500 already announced earlier this year...so, it's looking and probably feeling like Death Row over there.
Bank spokesman, Scott Silvestri, stated "The company regularly assesses the efficiency of its businesses and at times is going to make adjustments to meet the opportunities that are in the marketplace." Sounds about right though...what high functioning, financially-stable organization wouldn't?
Bank of America is in a vulnerable space right now partly due to its fast expansion during the height of the financial crisis. SEE: Countrywide Financial Corp., a California-based lender it bought in the summer of 2008.
Brian Moynihan, Bank of America's Chief Executive for approximately year and a half, is slimming down the bank after his predecessors' years of empire building. He's been cutting expenses, closing branches and selling off assets to build capital. The bank's announcement Monday that it would sell international credit-card units sent the shares soaring 8 percent. The bank points out that its capital levels are high and its default rates are lower.
The bank has lost money in three of the six quarters since Moynihan became CEO, including an $8.8 billion loss in the second quarter as it said aside money for potential claims from mortgage securities investors. Moynihan has been telling shareholders and employees that the bank is in the middle of a transformation that might be painful now but will stabilize it long-term. Sounds strangely familiar.
Source.
SCREAM @ ME!!!
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