Chillin' out till it needs to be funded
The rush oto cut jobs at BofA despite protestations of hiring throughout 2011 apparently implies that the bank could concentrate on Retail Banking units or branches to cut costs across the megalith. After cutting 178 branches last year which we took to be final as the bank moved pon to other divisions in Project New BAC or the quest for efficiency, the bankremains focused on ridding itself of non US investments and businesses despite having revamped its Investment Banking Unit in Europe as well. In the remaining 2012, the street expects (WSJ report of earlier this week as carried by Reuters and Global news broadsheets) another 200 branch closures to achieve the targeted 16,000 job cuts to take the total to 30,000 jobs and apparently less than 250000 FTE on its balance sheet or 260000 payroll employees. That number would well be less than Citi and Wells Fargo as well in terms of employee counts and would make the bank #3 or worse in no. of Employees
Meanwhile Goldman Sachs started a bull run from end August’ below $100 share price as it gets ready to report a new compensation structure and trading results for Q3 on October 16 a day before America’s Bank. Goldman Sachs employs less than 35,000 people and is a newbie to the business of retail and wealth banking. BofA is expected to report $0.60 cents for the year while JP Morgan will report $4.66 for the year with a $24 B revenue from Chase and its #1 Investment Bank when it kicks of earnings season on October 12, 2012
While BofA’s own analysts are strong on a housing recovery, mortgages will not make much of the $22 B the bank reports as Q3 revenues, Wells Fargo and JP Morgan being #1 and #2 in the business and BofA having rehauled its mortgage business after the Country wide acquisition.