Bank of America (NYSE: BAC) says it will cut 35,000 people over the next three years. Part of that has to do with its merger with Merrill Lynch. Part is because of a faltering economy.
The press release about the plan is a little odd. It does not say which parts of the company will be cutting and when they will cut. It is as if the number of people losing jobs was pulled out of thin air.
Bank of America made this comment in its press release about its plans: "Details as to specific reductions in communities or by business line have not been determined." In other words, the financial firm does not know much other than the body count.
The announcement may be a bit of a head fake. Stocks in the large money center banks are falling rapidly again. Shares in the major US financial firms are down between 25% and 50% over the last 90 days. Wall St. may be getting worried that Bank of America will be the next Citigroup (NYSE: C), a candidate for a big slug of cash and more government scrutiny.
By saying it will cut costs to the bone, Bank of America may just want investors to know that it has a reasonable future due to cost cuts. Even if a boatload of write-offs are coming.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
12-13-2008 @ 9:48AM
Reg Joe Moe said...
Bunch of crooked bankers again, ya mean in other words? BoA? Nah...
Personally, I'd want to see *all* these crooks laid off *now* instead of over the next 3 years. Please?
12-16-2008 @ 11:25AM
Georges Marciano Co-Founder of Guess said...
Bank of America are they above the law?
Posted on December 15, 2008 by o8justiceforall
IS BANK OF AMERICA ABOVE THE LAW???
The Government is balling out the banks for 700 Billion without investigating enough. The people who are losing their jobs and home needs the money, not the banks!
CAN SOMEONE PLEASE HELP ME? AS WELL AS OTHER VICTIMS BY THE BANKS.
I am cofounder of Guess? Jeans and have hundred of millions of dollars missing from Bank of America. It all started, in February 2006, with a not reported bonus of 200,000$ to my bookkeeper of 20 years has turned into a missing of hundreds of millions dollars in art, wine and cash by former trusted employees and Bank of America refuse to help me. In search for answers, I have begged my bank, Bank of America which I am client for over 15 years, to provide my complete file, canceled checks, deposits, withdrawals, interest earned, monthly statements, signature cards and corporate resolutions among others, for almost 3 years beginning February 2006 but to this day I have receive almost nothing.
After 5 subpoenas served on Bank of America I still do not have my documents. The officer of the local Bank of America has responded, on three different declarations under oath and penalty of pergery turned over everything but breach these declarations by continuing to produce documents in between each of them which is against the law. IS BANK OF AMERICA ABOVE THE LAW??? They have permitted cash withdraw in millions by others from my accounts and permitted opening of accounts in my name without my knowledge. Over 25 accounts were unknown to me until June 2008. How could Bank of America do this? Is this the consequences of corruption? Or a major cover up?
I am still without answers and the bank continues to withhold my complete files. All my rights are violated and the Government must do justice. There are hundred millions of dollars missing from my accounts. I believe only the Government can force them to comply. For almost three years, I have requested, by writing, the IRS to help me on this matter and to audit me but I have not yet received an answer.
PERHAPS, NOW, SOMEONE WILL FINALLY LISTEN!
IS THIS DONE TO ALL THEIR CLIENTS?
Thank you,
Georges Marciano
http://o8justiceforall.wordpress.com/