Bank of America Announces More Cuts
Bank of America Corp. (NYSE:BAC), the United States’ second largest lender by assets, is looking at trimming as much as $3 billion from annual expenses as the next step in chief executive officer Brian T. Moynihan’s efficiency plan, according to a Bloomberg report.
During a Jan. 19 employee meeting, Moynihan said the company, which has already decided to cut $5 billion from retail and back-office operations, may achieve a total savings of $6 billion to $8 billion a year, said the report. The most recent phase of his plan, scheduled for completion in April, targets trading, wealth management units and investment and commercial banking.
The cuts became necessary for Bank of America after mortgage losses and stricter U.S. regulation depleted earnings last year. The first part of Moynihan’s effort, called Project New BAC, called for 30,000 job cuts from consumer banking, home loan, credit-card and support operations.
Here’s how shares are reacting to the news:
Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $7.19, up $0.12, or 1.7%. They have traded in a 52-week range of $4.92 to $14.95. Volume today was 275,636,577 shares versus a 3-month average volume of 270,384,000 shares. The company’s trailing P/E is 719.00, while trailing earnings are $0.01 per share.