Bank of America Job Cuts to Total About 200 Globallyby and
Reductions said to also affect employees in London, Hong Kong
Moynihan warned this month that trading revenue was down
Bank of America Corp. is cutting about 200 jobs in its trading and investment-banking units around the world, including dozens in the U.S., after Chief Executive Officer Brian Moynihan pledged to trim expenses amid a decline in trading revenue, according to a person familiar with the decision.
The reductions affect employees in New York, London, Hong Kong and other major trading hubs, the person said, asking not to be identified discussing 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 hurt 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.
“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.
Senior U.S. employees affected by the cuts 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, people familiar with the matter said Tuesday.
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.