Bank of America Job Cuts May Reach 10,000 as Industry Reels

[marmar]

from 24/7WallStreet:




Bank of America Job Cuts May Reach 10,000 as Industry Reels
Posted: August 19, 2011 at 6:34 am


A memo from Bank of America CEO Brian Moynihan (NYSE: BAC) says that the financial firm will cut 3,500 jobs this quarter. Further restructuring could push that number as high as 10,000. Analysts have forecast that the bank industry will have to restructure again, though perhaps not as radically as in 2008. Balance sheets are still weak and earnings have been hurt by the loss of proprietary trading operations and the slow economy.

The fortunes of the banking sector were good just a year ago. Several large banks and investment houses posted near-record earnings in 2010. That was immediately after their unprecedented losses in 2008 and 2009. Bank proprietary trading and a rapid increase in corporate finance and M&A activity drove earnings higher.

Analysts have become concerned that banks could face the same kind of breakdown that they did in late 2008. That is because the assets they hold could be devalued by ongoing problems in the mortgage market and the possible collapse of the banking industry in Europe. Financial firms in France are at particular risk, and there are rumors that Credit Agricole and BNP Paribas could suffer huge losses due to investments in the sovereign debt in weak European nations. The global credit system is tied together closely enough that a bank failure in Europe would severely damage the financial prospects of banks in the U.S.

Whatever the cause, banks will start to lay off workers as predictions of earnings collapses become true. Banks perfected the art of layoffs three years ago, and that will come in handy throughout 2011 and 2012. Some estimates put the possible job cuts on Wall St. as high as 50,000. ..............(more)

The complete piece is at: http://247wallst.com/2011/08/19/bank-of-american-job-cuts-may-reach-10000-as-industry-reels/#ixzz1VTUTtrlE

[City Lights]

1. I suggest they start at the top and let the cuts trickle down from there. eom

[Sarah Ibarruri]

2. Every time corporations cut jobs I only think of two things:

1) They are doing it to keep higher management salaries and dividends high; and,

2) Doubling up the work on the employees left will cause errors left and right all over the place, and that will affect the customers.

[RB TexLa]

4. How would cutting 10k employees out of over 200k cause a doubling of work?

There is no math to make that work

[BadgerKid]

5. I guess there aren't 180k managers and 20k employees.

Gotta feel bad for the employees; they certainly didn't ask for this.

[Sarah Ibarruri]

6. It's a manner of speaking that every time the asshole corporations cut jobs...

the jobs not being done by those they cut, are suddenly done by the ones left. Certainly not by the stockholders who want to continue making mucho in dividends, certainly not by the assholes in upper management, and certainly not by their lackeys, the GOP.

[RB TexLa]

8. Div & Yield: 0.04 (0.60%) Want to rephrase the "mucho dividends" LOL

Really, that was funny.

http://finance.yahoo.com/q?d=t&s=BAC

[Sarah Ibarruri]

9. Not really. I see which side your bread gets buttered on. It's as if you were wearing a neon sign

on your back.

[RB TexLa]

11. I assume your reference to bread and butter is a slang expression. You really think a 1 cent a

share dividend is "Mucho"? And I have no idea what sign you think should be on me.

[Sarah Ibarruri]

12. My response is meant to mean that I have a feeling I know whom you vote for nt

[RB TexLa]

13. By my thinking a .6% return is not "mucho" LOL

Yes a 1 cent per share dividend, that is just outrageous.

:rofl:

[Sarah Ibarruri]

14. By my thinking you belong on Fox News, and I'm blocking you. bye! nt

[RB TexLa]

15. If you want to know who I've voted for all you have to do is ask

like an adult human being.

[Sarah Ibarruri]

10. And no indication of how you vote on your profile. I get the picture.clearly nt nt

[madrchsod]

3. my friend worked for ba in new york...

he lasted 3 years before he was cut. it`s been over 6 months and he has`t found anything. the only thing he has going for him is his extended family of fellow ghanaian `s here in the states.

[lib2DaBone]

7. The Bankers have soiled their own nest.... $Trillions in Derivatives coming due...

Trillions and Trillions of CDO's and Derivatives coming due and no money in the system. (They have taken it all and stashed it in the Caymen Islands)

And NO.. they can't look to the taxpayers for another bailout. But you never know.. Obama might cave on that as well.