Originally posted by: LegendKiller
Originally posted by: dmcowen674
10-24-2007
Bank of America lays off 3000
NEW YORK - Bank of America Corp, the second-largest U.S. bank, plans to lay off 3,000 people in its corporate and investment banking unit, including its chief.
The unit posted a 93 percent decline in earnings, which contributed to a larger-than-expected 32 percent drop in overall profit to $3.7 billion. Chief Executive Kenneth Lewis said he expected to scale back the unit.
Good ole Dave, speaking about many things he has no idea about. BofA's forray into IB was relatively small. As a bond underwriter, the role I knew them as, they didn't do so hot. Their position on the league tables is very small, in all asset classes. As far as M&A and other honey pots of IB, they are essentially non-existant.
Why would you go to a BOA when you could go to a Goldman, Morgan, or
Merrill, even on the low-end of the spectrum with smaller companies.
This isn't a huge shock, especially since a lot of their IB revenues came from internal sources, CDO and CLO origination, and other areas involving housing, not just their position in the market. All areas of the RMBS world are shedding jobs, since the volume has dropped precipitously. However, that does not, by any means, indicate a recession.
Really Dave, get a fricking clue.