Bank of America Seeking 20% Cut in Consumer Unit Costs

[marmar]

(Bloomberg) Bank of America Corp. (BAC), the biggest U.S. lender, may try to cut costs by 20 percent in consumer banking with measures that include thousands more job cuts, said two people with direct knowledge of the firm’s efforts.

Executives working on the cost-cutting plan, dubbed Project New BAC, set preliminary goals during their review of deposit, mortgage and card units, said the people, who declined to be identified because the talks are private. The consumer businesses comprise the largest division with about $30 billion in expenses last year.

“They’ve got to right-size expenses to match known revenues, and there’s no other way to do it but with job cuts,” said Greg Donaldson, chairman of Evansville, Indiana-based Donaldson Capital Management, a firm with $500 million in assets that sold its Bank of America stock this year.

.....(snip).....

The savings are likely to be achieved in part through thousands of job cuts beyond the 6,000 disclosed so far this year, said the people. The Charlotte, North Carolina-based lender may eliminate at least 10,000 positions, the Wall Street Journal reported. Scott Silvestri, a Bank of America spokesman, declined to comment on Project New BAC, the initials in the company’s stock ticker. .............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-19/bank-of-america-said-to-seek-20-cut-in-consumer-unit-costs-with-job-trims.html

[Sarah Ibarruri]

1. This is my bank. What a-holes! nt

[aquart]

2. Too big to jail?

[dixiegrrrrl]

3. Wow..they are admitting they have insufficient revenues....

"They’ve got to right-size expenses to match known revenues,"

KNOWN revenues.....

Sounds like they are not pulling figures out of their asses anymore. KNOWN revenue.
Even if they still wildly inflate their numbers, this is a change for them now.

Of course, everybody and their dog is suing them now, so I guess claiming lower revenues would be a smart tactic.