Bank of America Layoffs Coming: Report

Bank of America may see cut in its capital markets business, according to a report.
Author:
Publish date:

Updated from Monday, Sept. 20

NEW YORK (

TheStreet

) --

Bank of America

(BAC) - Get Report

is preparing layoffs in its capital markets business, according to a

report

by Charlie Gasparino of

Fox Business

.

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.

The

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.

The

Times

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

Citigroup

(C) - Get Report

and

JPMorgan Chase

(BAC) - Get Report

, the Sandler report stated.

But Bank of America executives aren't only ones bracing for bad news, according to the

Fox

report. It also states that

Morgan Stanley

(MS) - Get Report

senior executives have been warned they can expect bonuses that are "sharply lower" from last year. New CEO James Gorman has already

vowed publicly

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

Goldman Sachs

(GS) - Get Report

bonuses could drop 10% from last year. Goldman spokesmen did not immediately respond to an email message.

--

Written by Dan Freed in New York

.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.