BofA Said to Cut Dozens of Traders, Bankers as Revenue Drops

A Bank of America branch in Charlotte, North Carolina.

A Bank of America branch in Charlotte, North Carolina.

Photographer: Chris Keane/Bloomberg
  • Allison Ferreira, Frank Laino said to be among the departures
  • CEO Moynihan said this month that trading revenue was down

Bank of America Corp. is cutting dozens of jobs across the firm’s trading and banking divisions after Chief Executive Officer Brian Moynihan pledged to trim expenses amid a decline in trading revenue, according to two people with knowledge of the plans.

Senior employees being cut Tuesday include Alison Ferreira, a managing director and former co-head of New York equity sales, and Frank Laino, a managing director overseeing the Internet, health-care and small-cap trading teams, according to the people, who asked not to be identified speaking about personnel matters.

Wall Street firms have been cutting jobs amid a multi-year slowdown in trading revenue. Moynihan, 55, said this month that third-quarter revenue from that business declined about 5 percent as sluggish fixed-income markets dragged down results. A drop of that magnitude would bring trading revenue at the Charlotte, North Carolina-based company to about $3.27 billion for the quarter. Citigroup Inc. and JPMorgan Chase & Co. also forecast a decline for the business.

Weaker Revenue

“If the revenue environment weakens or the interest-rate structures don’t move up and the economy slows down, we’ll have to take out more costs to keep them in line with our revenues,” Moynihan said on Sept 17.

Nomura Holdings Inc. is cutting about 60 fixed-income and credit-derivative positions at its global markets operation in London, a person familiar with the situation said last month. Barclays Plc is eliminating 150 jobs at its investment bank globally as it shrinks its fixed-income operations, according to a person familiar with that decision.

Bank of America’s cuts may result in hundreds of job losses, the Wall Street Journal reported Tuesday, citing people familiar with the matter. The New York Post reported on Sept. 18 that Bank of America was looking to cut jobs before the end of the month.

Kristen Kaus, a Bank of America spokeswoman, declined to comment on the dismissals. Shares of the company fell 0.8 percent to $15.34 at 2:17 p.m., the second-biggest decline in the 24-company KBW Bank Index.

Morgan, Hlavacek

Tom Morgan, a director and 10-year Merrill Lynch veteran; Tim Hlavacek, in specialty sales of utilities; and Tara Dougherty and Jeffrey Peters, both vice presidents in equity sales, were also let go Tuesday, according to the people. The former employees didn’t reply to messages left on work or personal phones and to e-mails sent through LinkedIn.

The five largest Wall Street firms -- JPMorgan, Bank of America, Citigroup, Goldman Sachs Group Inc. and Morgan Stanley -- generated $73.7 billion from trading last year, with about two-thirds of that coming from the fixed-income units and one-third from equities. The total was down from $88.7 billion in 2010, with substantially all of the decline coming in fixed-income, according to data from Bloomberg Intelligence.

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