American Press, Oct. 25, 2007
CHARLOTTE, N.C. - In addition to scaling back its investment banking operations, Bank of America Corp. is exiting the wholesale mortgage business and eliminating about 700 jobs, bank officials said Thursday.
The nation’s second-largest bank will stop offering home mortgages through brokers at the end of the year to focus on direct-to-consumer lending through its banking centers and loan officers. The move also eliminates the jobs in the bank’s consumer real estate unit.
The bank shared details of the decision with The Associated Press before its public announcement scheduled for Friday.
The cuts are part of a 3,000-job reduction engineered by Chief Executive Ken Lewis after the nation’s second-largest bank reported a huge decline in third-quarter earnings.
“When Ken talks about a top-to-bottom review in five days time, you can’t make that happen. These cuts were in the works, and expect more,” said Tony Plath, an associate professor of finance at the University of North Carolina at Charlotte. “Don’t underestimate the depth of Lewis’ disappointment in earnings. This guy is pissed.”
Bank of America confirmed on Thursday that its co-head of equities, Peter Forlenza, had left the bank. Forlenza, who joined the bank in August 2002, left on his own accord, Bank of America spokeswoman Melissa Kitlowski said.
“When Ken talks about a top-to-bottom review in five days time, you can’t make that happen. These cuts were in the works, and expect more,” said Tony Plath, an associate professor of finance at the University of North Carolina at Charlotte. “Don’t underestimate the depth of Lewis’ disappointment in earnings. This guy is pissed.”
Bank of America confirmed on Thursday that its co-head of equities, Peter Forlenza, had left the bank. Forlenza, who joined the bank in August 2002, left on his own accord, Bank of America spokeswoman Melissa Kitlowski said.
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