Bank of America to cut 650 jobs,

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Bank of America to cut 650 jobs, sell brokerage

Reuters

NEW YORK — — Bank of America Corp. said on Tuesday it would eliminate 650 corporate and investment banking jobs and sell its equity prime brokerage business, as the second-largest U.S. bank retrenches in the face of difficult credit market conditions.

The job cuts affect about 12 per cent of workers in capital markets and investment banking operations, and follow a review announced in October. They are in addition to about 500 cuts made late last year as part of an overall reduction of 3,000 jobs companywide.

Bank of America will cut back operations in structured products such as mortgage and asset-backed securities and collateralized debt obligations. It also plans to cut some non-U.S. businesses while retaining a focus on debt, cash management, and trading of rates and foreign exchange.

Prime brokers typically provide trading, lending, cash management and other services to hedge funds. The job cuts do not affect Bank of America's prime brokerage.

ReportBusiness

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1. is this part of the Countrywide deal. buy Countrywide, cut a few of their jobs?