Dec. 16 (Bloomberg) -- Bank of America Corp., the third- largest U.S. bank, is firing at least 17 stock analysts as it reduces overlap from the purchase of Merrill Lynch & Co., three people familiar with the decision said.

Dana Cohen, who placed third for retailing and specialty stores in Institutional Investor magazine’s ranking of top analysts this year, is among those being fired, according to the people who declined to be identified because the cuts haven’t been made public.

“Equity research departments, which had been largely immune from the excessive layoffs of the past year, are now starting to suffer major hits,” Richard Lipstein, a managing director at Boyden Executive Search in New York, which specializes in financial services, said in an interview. “This is a reflection of the fact that although Bank of America is buying Merrill, Merrill Lynch’s research management will run the combined operation.”

Bank of America, based in Charlotte, North Carolina, plans to eliminate as much as 11 percent of its workforce, or about 35,000 employees, over the next three years as a weak U.S. economy guts the financial-services industry. Banks including Citigroup Inc. are shedding analysts as they reduce costs in the worst financial crisis since the Great Depression.

Bank of America’s equity research unit fell the most in Institutional Investor’s annual survey this year, dropping to 10th place from No. 6 last year. Merrill’s equity analysts were ranked third in the poll, up from fifth last year.

List of Analysts

Analysts who were fired, according to the people familiar with the decision, include David Strasser, consumer; Michael Pak, shipping; Thomas Robillard, business services/technology; Shelby Tucker, energy, Michael Schmitz, oil and natural gas; Doug Becker, oil drilling and energy, Alain Karaoglan, insurance; Christopher Allen, financial services; William Ho and Katherine Kim, biotechnology, Frank Pinkerton, specialty pharmacy; Tim Long, telecommunications; Kirk Materne, technology/software; Bryan Kraft, cable and satellite; Jess Lubert, video games; and Harry Nourse, aerospace.

Bank of America spokeswoman Melissa Kitlowski declined to comment. E-mails sent to Cohen and Allen yesterday were returned as undeliverable. Calls and e-mails to the other analysts weren’t returned.

Bank of America last month named Steve Tighe as head of North America equity research after the bank completes the purchase of Merrill Lynch. Tighe is now head of Americas equity research at Merrill. Michael Rietbrock, head of equity research at Bank of America, will become deputy director of North America equity research, according to an internal memo.

Citigroup trimmed its research staff by 3 percent in October and Goldman Sachs Group Inc. fired six equity analysts as it stopped covering 20 stocks and suspended research on 23.

To contact the reporters on this story: Josh Fineman in New York at jfineman@bloomberg.net; Jeff Kearns in New York at jkearns3@bloomberg.net.

Last Updated: December 16, 2008 00:36 EST