Bank of America to Cut Investment Bankers Pay by 25% (BAC)
Profitability problems at Bank of America Corp. (NYSE: BAC) will lead to a pay cut of 25% for the company’s investment banking group. Bloomberg News reports that bank executives had previously said that this would happen, but this is the…
Profitability problems at Bank of America Corp. (NYSE: BAC) will lead to a pay cut of 25% for the company’s investment banking group. Bloomberg News reports that bank executives had previously said that this would happen, but this is the week when pay discussions actually occur. Investment bankers face cuts to both salary and bonus payments.
BofA’s investment banking division posted a loss of $443 million in the fourth quarter and a $302 million loss in the third quarter.
The bank has committed to cutting $5 billion in costs this year and is looking to add another $3 billion in cost savings. Revenues are lower following new regulations related to proprietary trading desks, as well as tighter reserve regulations.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
