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Bank Of America To Fire 30,000 Employees


By

Christopher Robbins

Published Sep 12, 2011

Modified Sep 12, 2011


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By

Christopher Robbins

Published Sep 12, 2011

Modified Sep 12, 2011


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In a conference with investors earlier today, Bank of America CEO Brian Moynihan announced that the company would cut $5 billion in annual costs by the year 2014. This means that the bank will lay off "at least" 30,000 jobs out of BOA's 288,000 current employees. "It's taking out work we don't need to do any more, and getting it out of the company," Moynihan tells the Times. The layoffs will occur over the next few years, giving BOA employees on the chopping block plenty of time to steal as many office supplies that they possibly can.

In the past month alone, BOA has taken on a $5 billion investment from Warren Buffett and sold more than $15 billion in its assets to try to drive its lagging stock price up. When news of the layoffs hit the market BOA shares rose 1.1 percent (hooray, billionaires!) to $7.06, but it's still down 30 percent since the beginning of August.

Keeping BOA's stock languid are the bloated, toxic mortgage-based assets that the bank took on in excess when it bought Countrywide. As one investor pressed Moynihan for whether or not BOA would let Countrywide go bankrupt, thereby jettisoning the assets, the CEO dodged: "There are options around all this stuff that we continue to work on."

It certainly doesn't help that New York Attorney General Eric Schneiderman and several other top state attorneys, have been investigating BOA's shady practices in dealing in the worthless mortgage-backed securities. A proposed settlement that the bank desperately wants to push through would indemnify them from future lawsuits and allow them to pay pennies on the dollar. While the White House and other monied interests have also been rooting for the $20 billion settlement, the Feds are looking to sue all of the banks who played a major part in screwing over this country's economy.

Tagged

Bank of America

boa

economy

eric schneiderman

layoffs

mortgage crisis

Unemployment

wall street


Christopher Robbins

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Christopher Robbins is a New York City reporter covering transportation, affordable housing, local politics, and criminal justice. His work has also appeared in New York Magazine, The Village Voice and The New York Times. Chris is a graduate of Patrick Henry High School in Roanoke, Virginia, and enjoys biking to Fort Tilden in the summertime.

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Gothamist is funded by sponsors and member donations


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