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Showing posts from September 17, 2011

The great banking crisis

Bank of America is to cut 30,000 jobs over the next few years in a bid to save $5bn a year. The cost-cutting drive is part of a broader effort to reshape and shrink the US' largest bank as it copes with fallout from the housing bust. The cuts came on the day Barack Osama, the US President sent his $447bn jobs bill to Congress to help reduce the level of unemployment. The bank said it expects many of the cuts to come through attrition and eliminating unfilled positions through the cost-cutting programme called Project New BAC, named after the code for its shares on the stock market. The bank announced the job cuts in a statement shortly after Brian Moynihan, the bank's chief executive, disclosed the cost-saving goals in an address to investors saying "We're a much simpler company than we were 24 months ago". The Bank of America's stock had lost half its value this year, largely over problems related to poorly-written mortgages it acquired with its 2008 purchas…