Monday, January 23, 2012
BofA Targets Up to $3 Billion in Additional Cuts
Bank of America Corp., the second- biggest U.S. lender by assets, may reduce annual costs by as much as an additional $3 billion in the next stage of CEO Brian T. Moynihan’s efficiency plan, those good people at Bloomberg tell us.
The lender, which already targeted $5 billion in expense cuts from retail and back-office operations, may reach total savings of $6 billion to $8 billion a year, Moynihan said during a Jan. 19 employee meeting. The latest phase of his effort examines investment and commercial banking, trading, and wealth- management units and is scheduled to be completed in April..
Managers will reduce the “overall cost structure of the company; through New BAC we’ve identified $5 billion,” Moynihan said last week. “We’ll pick up more in Phase 2, that ought to get you $1.5 billion to $2 billion a quarter” in total savings….
Got a dry hankie ready? Get the truth, nothing but the truth at http://www.bloomberg.com/news/2012-01-23/bofa-targets-up-to-3b-in-additional-cuts.html