Bank of America to eliminate jobs in the equity sales and trading unit sectors.

June 30, 2011 - PRLog -- Miami, FL - Bank of America (BAC) is trying to emerge out of its recent financial losses associated with the acquisition of Countrywide.  The bank plans to cut 60 positions in its equity sales and trading division in order to balance out its expenses with revenue.

Bank of America is the biggest bank in assets in the U.S. with its headquarters based out ofCharlotte, North Carolina and employees around the globe, has sought to eliminate its least-productive force, said sources who declined to be identified as the announcement has not yet been made public.

The bank is not alone in eliminating equity sales.   Barclays Capital, the investment firm has also been cutting down in trading and research jobs as Wall Street firms have been struggling with loss of revenue from buying and selling securities.   Banks fixed-income trading revenue has fallen an estimated 30 percent since January while equity trading fell 15 percent, said Keith Horowitz analyst of Citigroup, Inc.  

Bank of America has been looking into cutting costs in other ventures, including the home-loan unit, said Brian T. Moynihan, CEO.    The bank will be eliminating staff in its mortgage-sales unit in the next few months because the demand for this product has declined, he said.  

The bank will be reporting a second-quarter loss of about $9.1 billion in part for its $8.5 billion settlement it’s paying to its investors.    In addition, the bank plans to add $6.4 billion in charges including legal fees and a write down of mortgage-unit goodwill.  
 
Bank of America remains strong and resourceful in assets, but as the need to maintain its expenses in line with revenues, the bank may also be looking to liquidate other assets it holds to generate additional cash, said Javier Zelaya, CEO for Corporate Asset Management (http://www.camreo.com) whose firm specializes in broker price opinions and REO liquidation.    

Dina Montoya, Editor
Mortgage Lending News
http://www.mortgagelendingnews.com
Miami-FL
info@mbnews.org
(305) 428-4125

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