Friday, April 25, 2014

Bank of America's new post designed to further 'simplify' the company

As it continues to look for ways to cut costs in a weak revenue environment for banks, Charlotte-based Bank of America said it has created a new role designed to further simplify the company.

Terry Laughlin, the bank's chief risk officer, who had split time between Charlotte and New York, has been named to the new post: strategic initiatives president.

The bank said Laughlin will oversee an initiative called Simplify and Improve, which is also designed to simplify work flow and find ways to invest in the company's operating platform.

His appointment comes three years after the announcement of the companywide cost-cutting and simplification program known as Project New BAC, a plan that calls for the bank to save $8 billion a year by mid-2015.

Laughlin's appointment builds on Project New BAC, the bank said. Since announcing Project New BAC, it has cut tens of thousands of employees and hundreds of branches.

But legal costs continue to weigh on the bank's earnings, and revenue growth remains tough for it and many other banks.

In the first quarter of this year, the bank lost $276 million, or 5 cents per share, as it recorded $6 billion in legal expenses. Revenue in the first quarter was lower than the same quarter last year.

Geoffrey Greener, who had been responsible for making sure the bank met regulatory capital requirements, has been named the bank's new chief risk officer, which means he is now part of the senior management team.


Anonymous said...

'Further simplify the company'?

In English, instead of banking doublespeak, that means: let's fire 10,000 to 20,000 more employees.

Anonymous said...

Oh make let me make it clear, we will bee loosing jobs. They will have it completed possibly by October of this year. If not sooner. I work at BOA. They are not telling us directly but it is in the works as I write. Everything is going electronic, clients will be going live and doing their own work. What we have been doing in the office will come down to about a hand full of people versus 20 plus. Just in our department. It is going to more I am sure of it. It is what it is. I am looking outside the bank and hope to leave before I get the pink slip.