BAC Just Dropped The Hammer

Word is Bank of America dropped the hammer today in the investment banking division with “Operation New BAC,” laying off analysts and tons of associates and VPs.  Cuts were said to be made across all investment banking groups.  While not confirmed severance was said to be 3 months.

A few analysts were cut in almost every group, some industry groups were said to have been pretty bad with 3+ analysts cut.

Today top executives at BAC met in Charlotte to discuses an internal restructuring plan.  It has recently been reported that BAC would be cutting close to 30,000 jobs over the next couple of years.

Over the past month BAC has seen significant deterioration in it’s stock price due to a large overhang in mortgage related problems, BAC giving up 7% of their company for convertible preferreds to Buffett, and capital inadequacies under new Basel III capital standard.

In our Hedge Fund 13F Intelligence report, we see many hedge funds holding BAC stock including: Appaloosa (reducing), Paulson (reducing), Fairholme (adding), and Glenview (new position).

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Disclosure: I do not have a position in any stocks mentioned in this article; do not have a plan to initiate a position within the next 72 hours.
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