One thing you can say about Bank of America CEO Brian Moynihan: he’s no procrastinator. The nation’s second largest bank is set to slash an additional 16,000 jobs by the end of 2012, according to the Wall Street Journal, meeting Moynihan’s latest headcount goal a full year ahead of schedule.
What you may not know is that with In the seven months between September 2011 and the second quarter of 2012, Bank of America got rid of 23% of its junior investment bankers, reported the Journal.
The majority of the new cuts are expected to affect the new mortgage and consumer banking businesses, while global wealth and investment management units will remain relatively untouched, sources told the Journal. In addition to the personnel cuts, BofA is expected to close roughly 200 branches this year.
Burdened with hundreds of thousands of risky home loans from before the housing market crash, an issue exacerbated by its 2008 acquisition of Countrywide Financial Corp., Bank of America was hit harder by the recession than rival firms, and has had to scale back its businesses to remain solvent.
When Moynihan eventually hits his 260,000 headcount target, Bank of America is likely to lose its designation as the nation’s largest banking employer. In fact, it may drop to fourth. Counting expected cuts, Bank of America will have trimmed payroll by nearly 10% since its peak in 2010.
Hopefully Moynihan is leaving the IT department alone. The BofA website has been something of a mess this week.
Appreciate the Effort (WSJ)
The Federal Reserve’s effort to boost growth domestically is forcing many emerging economies to adjust their own monetary policy to prevent their currencies from over-appreciating.
Warning Shot On Target (WSJ)
The Financial Services Authority warned Barclays of former CEO Bob Diamond’s “level of openness [and] transparency” with the U.K. watchdog back in 2010, before granting regulatory approval for his promotion to chief executive.
One Foot Out the Door (Financial News)
Adam Brett, a managing director at J.P. Morgan responsible for the bank’s U.K. mergers and acquisitions team, is likely to leave the firm in the coming weeks, although a promotion to a vice chairman role is still a slim possibility.
Luck of the Irish (Student News)
U.S. wealth management firm Northern Trust plans to roughly double its presence in Ireland over the next five years, creating an additional 400 finance, accounting, IT and administration jobs.
Japanese firm Nomura reportedly continued its job cutting spree on Thursday by slashing roughly 30% of its European investment banking division in what one source referred to a “D-day.” Nomura's London broker arm posted a $1.27 billion loss for the fiscal year ended March 31.
At Long Last (Bloomberg)
Deutsche Bank finally found a buyer for its BHF-Bank unit, agreeing on Thursday to sell the wealth manager and investment banking arm to RHJ International for $497 million. The German bank has reportedly been shopping the unit for the last two years.
Buzz Around the Office
Soldier of Fortune (Daily Mail)
A British soldier complaining of severe stomach pains was taken off the front lines in Afghanistan this week after medics realized that she was pregnant…and completely unaware. She gave birth to a premature, yet healthy baby boy hours later.
List of the Day: The Ideal Coworker
No one wants to be the office pariah. Here’s a few easy ways to avoid being “that guy.”
- Steer clear of lunches that stink up the entire office.
- Keep your personal drama to yourself.
- If you’re playing music in your cube, keep it “tasteful.”
(Source: AOL Jobs)