Nov 26, 2007

Bank of America

Part of a series The Great American Write-Down

Bank of America, (BAC) the nation’s second largest bank, said they will take a $3 billion write-down in the fourth quarter. When they announced that profits had dropped 32 percent for the third quarter they also had to include that they were going to let 3,000 staff go.
Every time a financial institution releases negative financials they feel that the next thing to say is that we are on top of things by letting people go. Of course 3,000 is a very safe number to throw out, with 198,000 employees, 3,000 can be done with little effort. What irks me is that Reuters out of London wrote that less than 100 of the cuts will come from Europe, Middle East or Africa, which leaves the good old US of A as the likely cutting field.

UPDATE 2-Analysts cautious on Citigroup; BofA downgrades stock
BofA to take $3B write-down
Fewer than 100 BofA cuts planned for EMEA -sourcesFTC Clears $21 Billion Purchase: BofA deal could cost Chicago jobs