Bank of America Cuts This High Profile Name

Bank-Of-America-Logo-1With Bank of America’s (NYSE:BAC) dismissal of Matthew Montana, a managing director for the lender’s New York equity division, the bank made its most high-profile cut in a rash of moves designed to trim its sales force.

Charlotte-based BofA is clearly having a problem that isn’t isolated in the industry: they can’t pay for so many sales and trading employees when revenue from the equities division is in decline. Members of the sales team in the distressed debt division – including industry veteran Harvey Potter – join Montana in the cuts. BofA also severed ties with Mathew Unsworth, head of Australian equities. Remarkably, the lender indicated Unsworth’s position would cease to exist following his departure.

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Morgan Stanley (NYSE:MS), Citigroup (NYSE:C) and UBS AG (NYSE:UBS) are making similar moves, signaling a shift away from a focus on investment banking and fixed-income trading. Citigroup’s cuts came to more than 11,000 employees, while BofA shed even more jobs in 2012 – over 14,000 in all. Analysts are pointing to improvements in technology as the reason behind industry-wide cuts. Managing directors are no longer necessary in this changing game. Of course, the decline in production trumps every other reason.