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Monday, August 22 2011 - By Becky Harris
Bank of America is selling off noncore assets in response to major losses over bad mortgages.
Bank of America recently announced it will eliminate 3,500 jobs, as a result of its continued struggle with bad mortgage assetes. The New York Times reported that the latest number of layoffs is in addition to the 2,500 jobs that have been cut in the past year.
In an internal memo, Bank of America CEO Brian Moynihan said more layoffs could be in the future, pushing the total to 10,000 jobs. "I know it is tough to have to manage through reductions, but we owe it to our customers and our shareholders to remain competitive, efficient and manage our expenses carefully," Moynihan wrote in the memo. Apart from job cuts, Bank of America has been selling its assets including its Canadian credit card business, while settling lawsuits surrounding bad mortgage assets that the bank inherited when it purchased Countrywide Financial Corporation, the news source reported. According to Forbes, the layoffs are expected to be spread out throughout the nation, not focused on one particular region. Under Moynihan's management, Bank of America has reported losses in three of the last six quarters, including an $8.8 billion loss in the second quarter of 2011. But Moynihan believes the bank is in the middle of a transformation and will be stable again soon. More News |
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