By Hugh Son, Bloomberg News
Bank of America Corp., the second- largest US lender, plans to cut more than 300 jobs from the corporate and investment bank and trading units run by Thomas K. Montag as underperformers are culled from its ranks, according to a person briefed on the matter.
The firm will target workers on desks where business has slowed, said the person, who declined to be identified because the Charlotte, North Carolina-based firms plans are private. The reductions are mostly separate from the company-wide cost- cutting program called Project New BAC, the person said.
Wall Street firms including Bank of America and JPMorgan Chase & Co. are dismissing staff to lower expenses as revenue wavers. Chief Executive Officer Brian T. Moynihan, whose efficiency plan may target as much as $8 billion in annual savings, announced 30,000 job cuts last year in retail banking and support operations.
Reductions at the investment bank and trading units will be spread among junior and senior employees, said the person. The bank will also reduce headcount in co-chief operating officer Montags operations by less than 2,000 after selling non-U.S. wealth management units, said the person.
The bank told investors last month that Project New BACs scrutiny of Montags units probably would be completed in May. Jessica Oppenheim, a Bank of America spokeswoman, said she couldnt comment on the job cuts. The Wall Street Journal reported on the eliminations yesterday.
In March, Bank of America cut debt and equity traders and salesmen, including more than half a dozen mortgage unit workers. The bank had 278,688 full-time workers as of March 31.
Swinging to Profit
Moynihan, 52, has said hes counting on trading units run by Montag to revive income at the lender, whose consumer operations have been hobbled by more than $40 billion of expenses tied to faulty mortgages. Montags business swung to a profit in the first quarter, with positive trading revenue every day.
Bank of America reorganized its reporting lines this year, combining deposit, credit-card and small business units into a new consumer-and-business banking division led by co-Chief Operating Officer David Darnell, 59. He also oversees real estate and wealth-management units.
Operations run by Montag, 55, the former Goldman Sachs Group Inc. trading head promoted to co-chief operating officer in September, were split into global markets and banking units.