Wednesday, March 19, 2014

BofA said to cut trading, investment banking jobs

Bank of America is cutting jobs in its global trading and investment banking divisions, Bloomberg reported Wednesday, citing people with direct knowledge of the matter.

The Charlotte-based bank declined to comment on the Bloomberg story. According to the report, one of the people, who asked to remain anonymous, said the dismissals will affect less than 5 percent of the employees in the units.

Bank of America has global trading and investment banking employees in Charlotte, although the majority of its employees in those divisions are in New York. The divisions fall under co-Chief Operating Officer Thomas Montag, who is also based in New York.

Montag is head of the bank's businesses that serve companies and institutional investors, including middle-market commercial and large corporate clients.

Montag was awarded $15.5 million in total compensation for his performance in 2013, according to a securities filing this month. That was up from $14.5 million the year before. It's also higher than CEO Brian Moynihan's $14 million in overall compensation for his performance in 2013.

The job cuts come as the bank has been slashing employees as it seeks to trim expenses under its Project New BAC initiative. At the end of last year, the bank had approximately 242,000 full-time equivalent employees, down nearly 10 percent from the year before, according to securities filings.

13 comments:

Anonymous said...

I'll remember to cry them a river when I see them at the ESC office...oh wait, that's just for poor people. These people have probably already found other jobs.

Anonymous said...

"Don't cry for me I own Argentina!"

Anonymous said...

Mafiosi just join another Family.

Anonymous said...

Why the lack of empathy? Do those who educate themselves, are ambitious and work 60+ hours/week in an industry that has deadly stress levels deserve less respect when her or his job is eliminated?

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

There is another new push to cut expenses by laying off workers here and moving their jobs to India to be farmed out to BACI workers. It's happening in many areas, GCIB and tech & ops are just a couple of these areas affected. This directive comes from the top as they try to align to their competitions marks of profitability and expenses. Farming stuff overseas just takes longer to do the work with more red tape and less quality. But this is how the ones making FAR more than others have decided to trim costs. It will come with its own price. For one thing, the reason it's challenging to find workers with the skills for the jobs here is because of mismanagement of the available jobs and farming stuff overseas. If people here see their jobs leaving, they'll leave the industry and go elsewhere. You're screwing yourselves BOA, and here you thought you were only screwing your customers and US employees.

Anonymous said...

What's happening is the continuation of moving all high-paying BofA jobs from Charlotte to Wall Street. The head of trading and investment banking is a former Goldman Sachs hot-shot, always based in NY. NY has been sticking it to Charlotte since Hank Paulson, former Goldman CEO and head of the US Treasury in 2008 removed BofA's southern board members and replaced them with NY and Boston guys. Good bank jobs have been moved from Charlotte to NY and Boston ever since - helping NY's economy and hurting ours. Yet no NC politician has raised a stink over it for 7 6 years now. Stupid is as stupid does.

Anonymous said...

To the anonymous poster who is upset about the offshoring......please find another song to play. Every time news like this comes out everyone wants to point to the offshoring to India....year after year ...it's getting old. You must be part of T&O since they are the primary users of BACI. This all hardens back to the days of Marc Gordon who has left....Yay,!!!

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Anonymous said...

As a former BofA employee in Charlotte I can only hope that the people laid off will get better jobs and see that the workplace doesn't need to be so stress filled and with ridiculous hours expected every week. Those that remain will unfortunately be under more pressure to do longer hours, and salary increases and bonuses will probably continue to decline. I wouldn't recommend to anyone that they work at BofA - they're probably the least employee-friendly company that I have ever worked for

Anonymous said...

@ former BofA employee - You are 100% correct, and that was putting it gently. There is so much I could say in addition, but I'm glad I'm no longer with them and am much happier with a fortune 500 company, that treats it's associates with respect and dignity, something that I didn't think was possible of corp America.

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