Exclusive report

Bank of America to fire 16,000 by year end

Curious why nearly 4 years ago to the day Ben Bernanke and Hank Paulson told Ken Lewis to purchase Merrill Lynch “or else” (but to make sure everyone gets paid their bonuses bright and early with no cuts)? It certainly had to do with the stock price and preserving the wealth of the shareholders. It had little to do with making the company viable in the long run, unfortunately, as the just announced news of a massive tsunami of 16,000 imminent terminations at the company confirms. 

All BofA did then was to take on dead weight at gunpoint, which it now has to shed. It also shows that despite rumors to the contrary the US economy is not getting better, the US financial system is not getting stronger, faith in capital markets is not returning (based on future staffing needs at banks), US tax revenues by the highest earners will go down, and the closed loop that is a procyclical economic move will just get worse as there are fewer service providers providing financial services, in the process taking out less consumer debt to keep the GDP “growing.”

What will also happen by January 1, 2013 is that BofA will no longer be America’s largest employer, with the total headcount of 260,000 at year end being the lowest since 2008, and smaller than JPM, Citi and Wells.

Charting the sad decline of the very appropriately named bank:

From the WSJ:

The reductions for the final six months of the year, outlined in a document given to top management, are part of a larger effort to retool Bank of America into a leaner and more focused enterprise. The plan is designed to make the company take less risk, generate more revenue out of existing customers and use an investment banking operation inherited from Merrill Lynch & Co. to become a major deal maker around the world.

On Main Street, the refocused company will have fewer branches and a smaller mortgage operation, the document shows.

Chief Executive Brian Moynihan is trying to speed the company’s transformation into a smaller and more efficient operation as he tries to persuade investors that expenses can be adjusted to compensate for revenue lost to new regulations, an uneven economy and shaky markets. Since becoming CEO in 2010, he has shifted away from a nationwide expansion strategy embraced by his predecessors Hugh L. McColl Jr. and Kenneth D. Lewis, and shed many of the businesses that he considers to be nonessential.

Hitting the new staffing target would fulfill a year early Mr. Moynihan’s pledge to slash the bank’s workforce by approximately 30,000.

“If they want to make any headway toward improving profitability,” said Sterne Agee & Leach Inc. senior banking analyst Todd Hagerman, “they need to accelerate the timeline.”

In the run-up to the financial crisis, Bank of America’s staff rolls ballooned as the company acquired rival financial institutions and pushed into every corner of the financial system, culminating in the 2009 purchase of Merrill Lynch.

But the 2008 acquisition of Countrywide Financial Corp. turned Bank of America into a huge mortgage lender just as the U.S. housing market collapsed, and left the company more exposed to any other major bank to the severe economic downturn that followed.

While most of the cuts are expected to come from the side of the bank that deals with Main Street, according to the document provided to management, the company has also culled some of its less-experienced investment bankers.

Through the end of the second quarter, Bank of America had reduced the ranks of junior investment bankers by 23% since September 2011, according to the document.

So while BAC shareholders may be happy for a few hours as even more costs are shed (even if at the expense of future revenues), the biggest loser is once again the US taxpayer, as 16,000 taxpayers (from the highest tax bracket) no longer pony up for the “common good.” One day, though, we are certain that BofA will do everything in its power to repay the Treasury and taxpayers for the fact that it is even still around. Just not yet.

Source: http://www.zerohedge.com/news/bank-america-fire-16000-year-end

4 comments

  1. Not engough. Bank of America should be closed and all its employees fired and the managment be put in prison for life.

  2. In 3 years I’ve tried 6 attempts to modify back to the 5.75% loan and I was denied once and I was ignored on the other attempts. I was not being greedy or forcefull, I just wanted my original LOCK-IN AGREEMENT! Because no loan is equal, neither is the statement true, Equal housing Opportunity and Equal housing lender. How can they be equal if they judge and condemn the poor and glorify the rich? I was told I could not afford the cheaper loan when I immediately called countrywide, but I had to sign because my family was going to be on the street if we waited and the bank new this. Our first time buying a house was hell, so shall fire come down from heaven by God’s hand. Because of Countrywides and Bank of Americas afflicting deeds of and exploiting the wages towards Americans, the worth of my house and property has decreased $50,000. The same amount they are foreclosing on my loan for. I find my house in pre-foreclosure online at 2/3 the price they’re trying to keep me obligated to under a predatory loan that changed on me without notification. I did not know this until I went to sign in 2008. I was locked-in at 5.75% and they changed it to 6.25%. It was supposed to be $0 down, 0 credit, $0 at closing as the builder claimed, but we ended up having to give our last $3,000 to our name. Now for some reason, probably to hide the way I have been treated ever since we purchased the loan and house, no-one seems to be able to find my lock-in agreement document that even my escrow and loan documents states is supposed to be there. So instead of giving me a copy of my lock-in agreement, B of A is foreclosing on me and trying to sell my note and loan to someone else trying to hide what they did and how they treated, a White, American Indian, German and Irish American Christian Child of God. I am telling the World, Universe and God Himself, to deal with Banks, greed, exploitation and their judging against man and his credit. So shall they all exploiters and extortioners of mans wages be given what they have done to God’s Children, DOUBLE in the Name of My Lord, Jesus Christ, in the form of storms and solar flares with God, His Spirit, Power, His Son and Blood being added in the Air, Light, Solar substance and water too, with God’s energy and power piercing through and eternally purifying All physical and spiritual substance. It IS DOne!

    Now instead of B of A adhering to our rights and answering our QWR and our request for the lock-in agreement they for some reason don’t have, which shows proof of them upholding preditory lending practices and neglect towards their borrowers rights, they put my house into pre-foreclosure and it gets put up for sale at 2/3 for what my loan is. I still can’t get my lock-in agreement. I tried to get it from Countrywide and they sold out to B of A. Now B of A is doing the same thing. So because B of A is doing the same as Countrywide did to me, so will B of A fail in the name of our Lord, Jesus Christ, Amen. All B of A had to do was give me the cheapest loan available at the time and give the same equally to everyone no matter what their credit score was. But they made sure of it that I DID NOT HAVE NOR GET AN EQUAL HOUSING OPPOTUNITY NOR LENDER. B of A has come against God and His Children, so shall He give banks, the same they render unto Us.

  3. Want a story? Bank of America against God and His Children. We were looking for our first home and was told we could afford one with zero down, zero credit and zero at closing. Both of us working but was never able to build credit because we had a zero credit score, noone would lend to us, not even a gas card, because we were judged by a credit score. We signed a “LOCK-IN AGREEMENT” for a 30 year fixed FHA loan at 5.75%. At signing we noticed it was a different loan and called Countrywide immediately. They said “You didn’t qualify for the cheaper loan, we thought we told you”. I said “No you did not, now we don’t have anywhere to live”. They said” well you can’t afford the cheaper loan”. So we were put into a preditory loan or my family on the street, since they knew we had already made arrangements to vacate the previous property. In 2008 I lost my job due to workplace bullies and liars, as well as health insurance loss for my family. I forgave them all and moved on without retaliation, still making payments with wifes income and unemployment which eventually ran out. We struggled with countrywide trying to get our original locked in loan agreement and we didn’t qualify. The laon was sold to Bank of America which we didn’t want to do business with because of their judgements, preditory actions and exploitation against wage earners, but was forced to anyways. We hired a company to modify our loan with promise to return our money if they couldn’t modify our loan. They couldn’t and made it look like our fault because they wanted us to lie to the bank telling them we had a tenant paying rent, which was not truth. They did not refund our money. The state made first time home buyer tax credits for 2008 and 2009 but we didn’t qualify for those either. We’ve given all personal documents of proof of income and every penny we spend to Bank of America for 6 attempts to modify our loan to our original lock-in agreement but the only response was to 2 of them, we didn’t qualify, the other 4 times we were ignored. We are being ignored to our QWR of all documents, where our lock-in agreement is that shows proof of predatory loan, and reasons behind loan payment amount changes was, we are foreclosing on your loan. Where is the mortgage police? I came down with what the hospital said was walking pnuemonia and with no insurance, 3 days in the hospital room with a couple of breathing treatments, cost $13,000. Medi-cal said they would pay 3 months back, I said ok. They got the bill and my family was kicked off of medi-cal immediately saying we didn’t fill out our yearly income report status, when it was only started a couple months prior. Tried getting medi-cal for family again and was denied. By law and by what is written in our loan, Bank of America must give us all documents about our loan after being requested and its been 3 years now, wheres my LOCK-IN AGREEMENT and why does bank of America get to be in default of our loan and not listen to us and our rights, but yet they force us to listen to their demands or my family becomes homeless. Because of all this against us, I had no choice but to repent, turn to God, become a true Child of God and Son of Man, seeking God with All His Righteousness and purity, becoming One with Him and Him in Us. Now Bank of America comes against Gods Children and against God Himself, for not listening to our rights, so shall Bank of America be foreclosed on, by God’s Power through Solar Flares, imparting upon them, the same homelessness they wish upon us. Other bank accounts started charging us $10 a month just because we are poor and cannot keep $1,500 in a bank account. They rob from God and His Children, so shall the same be upon them. We cannot afford an attorney’s greed against the poor either nor do we want to pay for our rights not being listened to. This is racism against those following Gods ways and is not an equal opportunity for us as claimed by banks, we are judged according to our credit, to give non equal loans. The rich with excellent credit scores gets cheap loans and the poor gets preditorized with expensive loans. This bank is not for America and needs America’s name staken away from them. What’s equal about a poor child of God having to eventually pay $550,000 on a loan of $190,000 on a property and house worth $145,000, when a person richer only has to pay face value or half as much as I? Look what has happened since 2008 to these that came against me. Employers, bullies, liars, gays, health insurance, hospital billing, gov insurance, unemployment, mortgage, banks, exploiters of wage earners, other countries governments realities and destinies and even Americas beliefs and worship, has come against God’s Children and even against God Himself. So this is the year for the thief in the night/storms, earthquakes, floods and reavelations, to come upon those that do and inflict these things against God’s Children. 70 weeks were given as prophecy of mercy then 1,335 days until the time of the end of mans ways against us as stated in NKJV bible Daniel 9-12, book of Joel, Isaiah 65,66, Malachi 3,4, 1st Corinthians 15, 1st John 3,4,5, John 17, John 3 and Revelations 19 to the end is here and NOW! Through God and His Son Jesus Christ name, Spirit, Body, Love and Substance of living Christ, added unto the Sun, Solar Flares, CME’s, Radiation, energy, light water and All substance right Now, to pour out upon All things in the universe, Heavens and beyond, especially upon and with All on and in Earth. Solar flares with God, air with God, water with God, Space with God, All has accepted God, when will mankind accept, the living God in All and treat All as God being with them? Verry soon I hope for there is a scourginging, purging and everlasting purification here and now eternally and where I know God and His Son to be, let noone ever be able, to remove Him, only themselves shall they have power to remove their living pressence from God’s pressence, only to realize, they still have life, in their own conscience accepted. The world and universes of existences, should not have remained, against God, His Children, His Word and His Creations. They should have repented when they were told to. No unbelieving, defiled, impure, nonrighteous, sinful, idolatrous, hateful, blasphemous, homosexual, mortal, diseased, or perishing creature, shall be able to enter or exist, inside of God’s Heaven or creations, which is and pierces through All Heavens and existences of creations and beings. What doctrine says otherwise?
    Ezekiel 33:9
    Nevertheless if you warn the wicked to turn from his way, and he does not turn from his way, he shall die in his iniquity; but you have delivered your soul.
    John 11:26
    And whoever lives and believes in Me shall never die. Do you believe this?”
    Matthew 5:20
    For I say to you, that unless your righteousness exceeds the righteousness of the scribes and Pharisees, you will by no means enter the kingdom of heaven.
    Matthew 23:13
    “But woe to you, scribes and Pharisees, hypocrites! For you shut up the kingdom of heaven against men; for you neither go in yourselves, nor do you allow those who are entering to go in.
    Matthew 7:21
    [ I Never Knew You ] “Not everyone who says to Me, ‘Lord, Lord,’ shall enter the kingdom of heaven, but he who does the will of My Father in heaven.
    Matthew 18:3
    and said, “Assuredly, I say to you, unless you are converted and become as little children, you will by no means enter the kingdom of heaven.
    1 Corinthians 6:1-10 (NKJV)
    Do Not Sue the Brethren
    1 Dare any of you, having a matter against another, go to law before the unrighteous, and not before the saints? 2 Do you not know that the saints will judge the world? And if the world will be judged by you, are you unworthy to judge the smallest matters? 3 Do you not know that we shall judge angels? How much more, things that pertain to this life? 4 If then you have judgments concerning things pertaining to this life, do you appoint those who are least esteemed by the church to judge? 5 I say this to your shame. Is it so, that there is not a wise man among you, not even one, who will be able to judge between his brethren? 6 But brother goes to law against brother, and that before unbelievers!
    7 Now therefore, it is already an utter failure for you that you go to law against one another. Why do you not rather accept wrong? Why do you not rather let yourselves be cheated? 8 No, you yourselves do wrong and cheat, and you do these things to your brethren! 9 Do you not know that the unrighteous will not inherit the kingdom of God? Do not be deceived. Neither fornicators, nor idolaters, nor adulterers, nor homosexuals,[a] nor sodomites, 10 nor thieves, nor covetous, nor drunkards, nor revilers, nor extortioners will inherit the kingdom of God.
    Matthew 16:28
    “Assuredly, I say to you, there are some standing here who shall not taste death till they see the Son of Man coming in His kingdom.”
    Mark 9:1
    And He said to them, “Assuredly, I say to you that there are some standing here who will not taste death till they see the kingdom of God present with power.”
    Luke 9:27
    But I tell you truly, there are some standing here who shall not taste death till they see the kingdom of God.”
    John 8:52
    Then the Jews said to Him, “Now we know that You have a demon! Abraham is dead, and the prophets; and You say, ‘If anyone keeps My word he shall never taste death.’
    Hebrews 2:9
    But we see Jesus, who was made a little lower than the angels, for the suffering of death crowned with glory and honor, that He, by the grace of God, might taste death for everyone.

    Is because I am White, Indian, American or Christian? Now instead of B of A adhering to our rights and answering our QWR and our request for the lock-in agreement they for some reason don’t have, which shows proof of them upholding preditory lending practices and neglect towards their borrowers rights, they put my house into pre-foreclosure and it gets put up for sale at 2/3 for what my loan is. I still can’t get my lock-in agreement. I tried to get it from Countrywide and they sold out to B of A. Now B of A is doing the same thing. So because B of A is doing the same as Countrywide did to me, so will B of A fail in the name of our Lord, Jesus Christ, Amen. All B of A had to do was give me the cheapest loan available at the time and give the same equally to everyone no matter what their credit score was. But they made sure of it that I DID NOT HAVE NOR GET AN EQUAL HOUSING OPPOTUNITY NOR LENDER. B of A has come against God and His Children, so shall He give banks, the same they render unto Us.

  4. When the brick and mortar of the bank itself starts closing down, then I will believe it. Until then they are just reshuffling the old for the new hires for cheaper pay.

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