Essay About Bank Of America And Latest Job Cuts

Bank of America
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Bank of America will cut about 30,000 jobs over the next few years in a bid to save $5 billion per year. The cost-cutting drive is part of a broader effort to reshape and shrink the nations largest bank as it copes with fallout from the housing bust. Bank of America stock was up 2 cents at $7 at midday. The stock has lost half its value this year, largely over problems related to poorly-written mortgages it acquired with its 2008 purchase of Countrywide Financial Corp. The bank faces lawsuits from investors and regulators over the sales of mortgage-backed securities that lost value after the housing boom collapsed. The latest job cuts will lead to a 10 percent reduction in the banks work force of 288,000. The cuts come on top of 6,000 positions the bank has already eliminated through the third quarter of this year. Bank of America investors reacted pretty positive its something everyone has been waiting for the job cut number has been talked about a lot at least 10,000. In a statement, Bank of America said: “Moodys decision to downgrade our credit rating is based on factors external to Bank of America: Their conclusion that the Dodd-Frank legislation will make the U.S. government less likely to support financial institutions in a crisis, and a possible further deterioration of the economy. In fact, Moodys explicitly stated that the downgrades do not reflect a weakening of the intrinsic credit quality of Bank of America.” Not only is Bank of America cutting jobs but so are Wells Fargo and Citibank. They are all going through a financial crisis. In order to keeps business going they must know how to manage the money correctly. You also need all the factors of production (land, labor, capital, entrepreneurship) the most important thing you need so your business can keep running is a business plan. Without a business plan you are going to fail or go out of business.