Bank of America Corp.’s John McNiff, a managing director who served as co-head of trading in commercial mortgage securities, resigned yesterday amid the latest staff cuts, said two people with knowledge of the move.
Managing directors Seth Jackier in mortgage sales and John Eck in asset-based trading also are leaving the Charlotte, North Carolina-based company, said the people, who asked for anonymity because the departures are private. Michael Case, a director in commercial mortgage security banking, and salesmen John Livingstone and Michael L. Miller also departed this week, one of the people said.
Bank of America told employees yesterday about cuts in global banking and markets as Chief Executive Officer Brian T. Moynihan adjusts to lower revenue. While most reductions were in equities, the company also culled personnel in fixed income, one person said. Departures included Steven Milunovich, the veteran stock analyst, people with knowledge of the matter have said.
“Areas like this that didn’t come back as expected are the ones that companies are now evaluating,” said Jeanne Branthover, managing director at Boyden Global Executive Search Ltd. in New York. “This isn’t necessarily bad news” for people who may have been considering moving to other firms, she said.
Some employees volunteered to resign in exchange for a so- called garden leave, a period of about 90 days in which they receive full salary and benefits while staying at home, as well as severance packages, the people said.
The bank also is cutting outside the U.S., dismissing almost a dozen workers at its Canadian capital markets business as part of a global staff reduction, one person said. The move leaves the bank with almost 500 people at offices in Toronto, Montreal, Vancouver and Calgary, the person said.
McNiff, Eck and Livingstone said they couldn’t comment. Jackier, Case and Miller didn’t respond to phone messages.
Wall Street firms are firing staff and reducing pay as revenue wanes from trading and underwriting. More cuts are coming at Bank of America as part of Moynihan’s efficiency plan, which may target as much as $8 billion in total annual savings. Moynihan, 52, already announced as many as 30,000 job cuts in retail banking and technology.
Bank of America lost market share last year to rivals including New York-based Morgan Stanley (MS) in the trading of equities, bonds, currencies and commodities, Matthew O’Connor, an analyst at Deutsche Bank AG, said in a Jan. 19 research note.