Having grown too big, Bank of America to cut back again
A flag flies outside the Bank of America Corporate Center in downtown Charlotte, North Carolina.
Jeremy Hobson: Now to some bad news on the job front. There are reports this morning that Bank of America could cut 30,000 to 40,000 jobs. Confidence in the bank has been dropping recently because of huge mortgage losses and lawsuits.
Marketplace's Amy Scott reports.
Amy Scott: Bank of America CEO Brian Moynihan is expected to say more about his cost-cutting plan Monday at an investor conference in New York.
Marty Mosby is managing director at Guggenheim Partners in Memphis. He says during the 2000s, Bank of America got too big. He says the cost-cutting will look at all parts of the business.
Marty Mosby: And say now, "let's focus on the customers that we service the best. Any place we have an ancillary business that isn't generating the appropriate returns, then we're going to look for an exit strategy out of that business."
Mosby says the bank has already spun off more than 20 companies. The bank's already cut six thousand jobs this year. More restructuring means more job losses.
Bank of America wouldn't comment on specific numbers this morning.
I'm Amy Scott for Marketplace.