Bank of America to cut 3,500 jobs
Bank of America (BAC) is shedding 3,500 jobs, a spokesman for the banking giant said Friday. BofA would not elaborate on whether jobs in the mortgage lending or servicing segments are included in the cuts. Spokesman Scott Silvestri said the company, which has about 287,000 employees worldwide, is eliminating positions across the board. Brian Charles, a banking analyst with R.W. Pressprich & Co., said while there's speculation BofA will make more cuts in the remaining four months of the year, he does not anticipate the bank's mortgage servicing segment —- an area of widespread concern — will be impacted. "They are still trying to get their arms around the foreclosure process," Charles said of BofA. "They want to make sure they have the headcount to do that." Silvestri with BofA said the bank "regularly assesses the efficiencies of its business and from time to time is going to make adjustments" to meet the operating needs of the marketplace. The jobs cuts, which are expected to be complete by Sept. 30, follow 2,500 staff reductions from earlier in 2011, bringing the total number of layoffs at BofA to 6,000 this year. The cuts comes as analysts are watching developments and financial statements from BofA closely, with the bank now holding the mortgage assets of former subprime lender Countrywide Financial and facing a string of cases from insurers and investors who want compensation on losses tied to soured mortgage-backed securities. Second-quarter earnings from the nation's big banks showed the firms experienced modest loan growth and higher earnings during the period, according to analysts at FBR Capital Markets. Bank of America reported an $8.8 billion loss for the second quarter due mostly to the bank's $8.5 billion settlement with mortgage-backed securities investors. Investors and at least two state attorneys general have pushed back against the settlement, saying it could prevent adequate recovery for all investors involved. Write to: Kerri Panchuk.