Bank of America Corp., the second- biggest U.S. lender,
plans to cut $3 billion in annual expenses from investment banking, trading
and wealth-management units, Bloomberg tells us. The cuts,
which are expected to be completed by the middle of 2015, represent 11 percent
of expenses in the targeted areas, the Charlotte, North Carolina-based bank
said today in a presentation on its website. The initiatives have already
begun, the lender said, without specifying the number of job cuts, which are
part of a larger effort to reduce costs by $8 billion.
CEO Brian T. Moynihan, 52, is relying on
expense cuts to improve profit as mortgage losses and regulation squeeze
revenue. The earlier phase of his efficiency plan, called Project New BAC,
targeted $5 billion in costs and 30,000 jobs from retail and back-office
operations. Moynihan has said that the firm won’t achieve his pretax profit
goal of $35 billion to $40 billion until interest rates rise, the U.S. economy
accelerates and costs are brought down....
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