The Wall Street Journal reported a rumor that Bank of America (NYSE: BAC) will cut as many as 2,000 jobs primarily at its investment bank and commercial units. If this happens it is another sign that Wall St. firms in general have been hurt by a downturn in underwriting, M&A, and business loans. Some estimates say that there are tens of thousand of jobs at risk at the largest investment banks which include Morgan Stanley (NYSE: MS) and Goldman Sachs (NYSE: GS).
Bank of America has been particularly troubled by it weak balance sheet and fights with state and federal governments over its mortgage and mortgage financial instrument practices. Last year, B of A said it would cut 30,000 jobs. What were among the banks most profitable units are now struggling as well.
Douglas A. McIntyre