- Greek Cabinet Approves EU, IMF Bailout Bill
- We're Not Greece: Italian Prime Minister Monti
- Private Homebuilders in the US: Dead Men Walking
- Dividend Payout Could Hit Record Amount This Year
- With Investors So Bullish, Stock Pullback Must Be Ahead
- Obama Likely to Call for Cutting Top Corporate Tax Rate
- New York Fashion Week Fall 2012
- NetNet: Why Saving Greece Could Destroy the World
- My Funny Valentine: When Love and the Fed Collide
- In Search of America's ‘Hottest Forecasters’
- Dow vs. S&P 500: Which is a Better Investment?
- Mick Fleetwood on the MP3 ‘Dumbing Down’ of Music
- Avis on the Road to Strong Growth: Analyst
- Private Homebuilders: Dead Men Walking
- LinkedIn’s Growth Is Already Priced In: Analyst
- The Real Reason Behind Bank of America’s Rally
- 5 Hedge Funds’ Top Stocks Soar After 2011 Rout
- This Valentine’s Day Love Is Served on a Silver Platter
MOST SHARED
- We're Not Greece: Italian Prime Minister Monti
- Obama Likely to Call for Cutting Top Corporate Tax Rate
- To Play Senate Cybersecurity Bill, Cramer Likes Fortinet Stock
- Greek Cabinet Approves EU, IMF Bailout Bill
- Special Feature: Wall Street History - How Wall Street Got Its Name
- How to Trade the Turmoil in Greece
- Private Homebuilders: Dead Men Walking
- Why Cramer Likes Select Comfort Over Tempur-pedic Stock
- Cramer: 10 Earnings to Watch Next Week
- Lightning Round: Trina Solar, Zoltek, Affymax and More
MOST POPULAR
HOT ON FACEBOOK
Bank of America Cuts 3,000 Jobs; I-Bank Chief Exits
Text Size 
Bank of America on Wednesday said it plans to eliminate 3,000 jobs, and that the head of corporate and investment banking will depart after a dismal quarter at that unit led to a 32 percent drop in overall profit.
The second-largest U.S. bank said a majority of the job cuts will be in corporate and investment banking, and the rest elsewhere. These cuts amount to less than 2 percent of the company's overall workforce.
 |
Oliver Quillia for cnbc.com Bank of America branch, New York City. |
Cutbacks were widely expected after a $1.46 billion trading loss led to a 93 percent decline in quarterly earnings from corporate and investment banking.
The trading loss limited overall profit to $3.7 billion, or 82 cents per share. Excluding items, profit was 84 cents per share, 22 cents below the average analyst forecast.
Gene Taylor, a 38-year veteran of Bank of America, will retire at year end as president of global corporate and investment banking, to be replaced by Brian Moynihan, now head of wealth and investment management, the bank said.
Charlotte, North Carolina-based Bank of America [BAC
Loading...
()
] also said it has launched a strategic review of corporate and investment banking to determine how the unit can operate better.
"While some of these changes are a direct result of our underperformance, others have been contemplated for a number of months," Chief Executive Kenneth Lewis said in a statement.
"The vast majority of our company is performing quite well," he continued. "However, we recognize that there are areas where we need to improve ... We must have a platform that operates profitably for both our company and our clients."
On Oct. 18, when discussing quarterly results, Lewis' displeasure was evident as he told analysts: "I've had all of the fun I can stand in investment banking at the moment."
The 48-year-old Moynihan is the bank's most senior executive from the former
FleetBoston Financial, which Bank of America acquired in 2004.
- Marketing clichés aside, sometimes diamonds are for investing.
- The ‘Fast Money’ traders weigh in on fashion related stocks from apparel to footwear.
- This list of the 10 most active cities for speed traps was compiled by Trapster.com. See if your town is there.
- This Valentine’s Day should prove a love fest for restaurants, as many couples will be dining out.
- Here’s a look at Westminster Kennel Club’s most successful breeds—and how much they cost.
- What kind of homes do celebrity couples share? Here’s our updated list. Take a look.
Data is a real-time snapshot *Data is delayed at least 15 minutes
