Here is another bad news to the ailing economy of the United States. The Bank of America is set to cut 3,500 jobs in the next few weeks to cope up with the bank’s $1 trillion pile of problem home mortgages. According to reports, the number could rise further to 10,000 in the coming months after the biggest US bank suffered quarterly loss over the pat two years including a a record loss of $8.8 billion in the latest quarter.
It was learned that investors have pummelled the banks’ stock in recent weeks on fears it may need to raise outside capital to absorb losses. Moreover it was learned further that the job cuts are expected to be supplemented by additional cost-cutting in future quarters as part of a previously announced expense control program known
as New BAC — a reference to the b ank’s stock ticker. Bank of America serves clients in more than 150 countries and has a relationship with 99% of the U.S. Fortune 500 companies and 83% of the Fortune Global 500.
The company is a member of the Federal Deposit Insurance Corporation (FDIC) and a component of both the S&P 500 Index and the Dow Jones Industrial Average.As of 2010, Bank of America is the 5th largest company in the United States by total revenue, as well as the second largest non-oil company in the U.S. (after Walmart). In 2010, Forbes listed Bank of America as the 3rd “best” large company in the world.
The bank’s 2008 acquisition of Merrill Lynch made Bank of America the world’s largest wealth manager and a major player in the investment banking industry. The company holds 12.2% of all U.S. deposits, as of August 2009,and is one of the Big Four banks in the United States, along with Citigroup, JPMorgan Chase and Wells Fargo—its main competitors. According to its 2010 a nnual report, Bank of America operates “in all 50 states, the District of Columbia and more than 40 non-U.S. countries.” It has a “retail banking footprint” that “covers approximately 80 percent of the U.S. population and in the U.S.” it serves “approximately 57 million consumer and small business relationships” at “5,900 banking centers” and “18,000 ATMs.”