Bank of America
is expected to lay off several thousand employees in its capital markets businesses starting this week, the
Most of the cuts are expected to be in New York, the newspaper reports, citing executives familiar with the matter. The cuts come three weeks after the bank acquired Merrill Lynch.
According to a Merrill executive, the capital markets headcount of the combined banks is expected to be reduced by between 30% and 40%, meaning the number of job cuts could reach about 4,000, the
reports. Banc of America Securities employs between 4,000 to 5,000 workers, while at least as many are believed to work in Merrill's capital markets divisions, bank executives said.
Bank of America had no comment but pointed to its announcement in December that it expected to lay off about 35,000 employees across its businesses in the coming years, the newspaper reports. It's expected that most of the capital-markets job cuts will occur among Bank of America legacy employees, according to the
On Friday, the U.S. government said it plans to invest an additional $20 billion in Bank of America and provide "protection against the possibility of unusually large losses" on an asset pool of about $118 billion of loans, securities and other assets.
The bank reported a fourth-quarter loss of $2.39 billion, or 48 cents a share, amid escalating credit losses and significant writedowns and slashed its quarterly dividend to a penny.
This article was written by a staff member of TheStreet.com.