bank of america cutting 3,500 jobs, thousands of more jobs to follow!!!!

Discussion in 'Wall St. News' started by S2007S, Aug 19, 2011.

  1. S2007S


    Yep the turn around is happening, all that great stimulus, tarp, and all the QE will do nothing to save this economy. Jobs are being lost left and right as this will be the trend for years to come. The banking sector has already let go tens of thousands of jobs these last few weeks. Banks are still in trouble, the stress on these banks is overwhelming as it shows that they arent lending out money. I guess the good news is they are putting another economic plan together in the next 2 weeks to create more jobs for this economy, HAHAHA! Yea right!

    Bank of America Cutting 3,500 Jobs, And More May Follow
    Reuters | August 19, 2011 | 01:53 AM EDT

    Bank of America [ BAC.N 7.01 +0.00 (+0.00%) ] is cutting 3,500 jobs this quarter and working on a restructuring that could eliminate thousands of additional positions, adding to a slew of layoffs by major banks.

    Sensitive to the ups and downs of the global economic cycle, global banks have announced close to 50,000 job cuts, starting now and continuing in coming years.

    HSBC [ HSBA.L 504.40 -5.20 (-1.02%) ] and Lloyds Banking Group [ LLOY.L 28.27 -1.535 (-5.15%) ] have announced the biggest cuts.

    The job cuts at Bank of America, expected to be completed by the end of September, are spread across the company including investment banking and trading, according to a report in the Wall Street Journal confirmed by CNBC.

    Bank of America was not immediately available for comment outside regular U.S. business hours. Its shares, down more than 23 percent over the past month alone, fell another 2 percent in premarket trading.

    Thousands of additional reductions are expected as part of an overhaul known as "Project New BAC.

    Executives at the bank still are discussing the possible range of cuts, but one person familiar with the situation said at least 10,000 jobs are likely to be eliminated.

    Investors have hammered the bank's stock amid fears it may need to raise money by offering new shares to help absorb billions in legal and credit costs stemming from its 2008 purchase of Countrywide Financial.

    Shares in the largest U.S. bank have more than halved from a peak above $15 a share in January, closed at $7.01 on Thursday.

    Eager to shed assets and rebuild its battered capital base, Bank of America said on Monday it plans to sell its $8.6 billion Canadian credit card portfolio to TD Bank Group [ TD.TO 74.00 +0.00 (+0.00%) ].

    Bank of America has lost more than $22 billion in its consumer mortgage division in the last four quarters.

    It agreed in June to pay $8.5 billion to mortgage securities investors and is fighting numerous lawsuits challenging the settlement and other mortgage issues.
  2. I'll be damned. BoA is a Beast!