Bank of America (BAC) managed to cut its legacy asset servicing costs this year, with those expenses expected to fall to a normalized run rate of $500 million per quarter by the end of 2015, TheStreet reports.
The publication notes that:
"This compares to $2.3B in Q2 of this year. Annually, this is $7.2B in savings over the next 2 years and beyond (mostly by way of layoffs as the beefed-up staff hired to deal with non-performing mortgages is cut).Sponsor Content
For this year, management now expects LAS costs to fall to $2B in Q4. This is below the $2.1B guidance given during the Q2 earnings call (transcript)."