Updated from Monday, Sept. 20
NEW YORK (
Bank of America
is preparing layoffs in its capital markets business, according to a
by Charlie Gasparino of
Managers in certain "profit-challenged areas" have been told to cut about 5% of staff, according to the report. A call to global markets chief Tom Montag and an email to bank spokespeople were not immediately returned.
New York Times
reports the layoffs are expected to affect several parts of Bank of America's investment banking unit, including areas like equity and fixed-income trading and investment banking.
says several hundred jobs in the investment banking unit will be trimmed this week. The newspaper cited interviews with several employees.
Bank of America posted second-quarter trading revenue that, according to a Sandler O'Neill report in July, "were well below our already reduced estimates." The 55% sequential decline in investment bank trading revenue compared to declines of 36% at
, the Sandler report stated.
But Bank of America executives aren't only ones bracing for bad news, according to the
report. It also states that
senior executives have been warned they can expect bonuses that are "sharply lower" from last year. New CEO James Gorman has already
to reign in pay at the bank, that was higher than most peers last year by certain measures. A Morgan Stanley spokesman had no comment.
Gasparino also writes that
bonuses could drop 10% from last year. Goldman spokesmen did not immediately respond to an email message.
Written by Dan Freed in New York
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