Shake-up Rocks I-Banking Unit After Deep Losses

Bank of America hires new unit president, announces lay-offs
By Wesley Oliver,  Newser Staff
Posted Oct 25, 2007 4:45 AM CDT
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(Newser) – After last week’s dismal report card for its investment arm, Bank of America replaced that unit’s president and announced a slate of reforms to recharge the business. Gene Taylor abruptly retired and will be replaced by Brian Moynihan, the bank’s president of Global Wealth and Investment Management, and an architect of its FleetBoston merger, reports the Wall Street Journal.

The bank will also trim 3,000 jobs from its investment banking unit, a 2% cut. The company conceded in a statement that some of the changes resulted from its “underperformance,” but said others had been in the works for months, writes Bloomberg. The firm reported trading account losses totaling $1.45 billion, staggering its net income by 32%.