This article was originally published by Tyler Durden at ZeroHedge.
After being canceled last year, the annual culling of the underperformers is underway once again at BofA.
Following a slowdown in layoffs during the pandemic as a coterie of megabanks (including BofA and Deutsche Bank) announced plans to suspend layoffs, Wall Street’s talent-churning machine is firing back up. Bank of America’s Global Banking and Markets division is reportedly preparing to move ahead with layoffs now that 2020 is finally over. Last year, BofA CEO Brian Moynihan promised that BofA would hold off on any further layoffs until 2021, even as other Wall Street banks started handing out pink slips again once the fall months arrived.
The cuts impacted employees in capital markets, research, and investment banking according to Business Insider. Sources from inside the bank said the cuts are part of the typical cycle of Wall Street layoffs, as banks seek to preserve top talent and cull underperformers. They added that the number of people fired was in line with prior years.
Some of those being handed pink slips are senior staffers who volunteered for buyouts.
It’s not exactly clear what percentage of staffers from the Global Banking and Markets division are being cut.
Staffers across Wall Street already had to contend with what was by all accounts a disappointing bonus season, despite the blowout profits reaped by big banks in 2020 as markets boomed. Investment banking and trading operations posted blowout performances in 2020, but institutions as a whole suffered steep profit declines as they braced for loan losses tied to the pandemic.
At BofA, management’s decision to waive a new bonus policy for veteran traders and dealmakers has caused “internal drama”, as the new rules were supposed to be applied broadly. Those who weren’t subject to the policy have been “gathering on calls to vent frustrations and discuss options”. In some ways, the divisiveness dates back to BofA’s 2008 takeover of Merrill Lynch, the Wall Street investment bank that nearly went under during the financial crisis.
It Took 22 Years to Get to This Point
Speaking to author and podcaster Dana Parish, former Centers for Disease Control and Prevention...
The United States just made a decision that could lead to World War 3. The current ruling class...
Russia has just announced that conscription in the former Soviet Union is "unnecessary" as...
This article was originally published by Michael Snyder at The Economic Collapse Blog. This...
Commenting Policy:
Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.
This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.
Countless social promotions to WASP replacements.
“banks seek to preserve top talent”
Namely what talent?
This is what big companies do, Buy off the top jobs with a big bonus, then the real people just get kicked out the door. I worked for the feds, the connected people would be given a bonus of $25,000 and they would retire, they could have retired 5 to 8 years ago but they knew the bonus was coming.
Hmm, I wonder how many are conservatives, trump voters, gun owners etc.And non- democratic thinking people.
“underperformers”
Those employees who haven’t looted enough money from their “muppet” clients.
(I know all different levels of decorum and small talk, to suit every social occasion.)
There were no “intangibles”, in your hiring process.
If your employees don’t look like me, you’re a branch of Antifa.