590 replies to this topic

[kermit]

In a mostly irrelevant blast from the past the WSJ is reporting that Bob Kelly (one of the finalists to replace Ken Lewis) has resigned as Chairman and CEO of BNY Mellon.

[SmellyCat]

50% BNY Mellon stock price erosion on his watch and a $33mm exiting pay package....nice job, Bob!!!  Right up there with Stan O'Neal at Merrill.  You should be proud.

[kermit]

While I certainly don't want to become the pessimistic guy I can't help but be alarmed at BoA's latest cost cutting pronouncements.

$5 billion in cuts beginning next month

Surely this plan will impact local employment. I guess the question is how much will it hurt local HQ employment? Does anyone with insight care to speculate?  I could imagine cuts ranging from best case of 10% or so HQ downsize (1,500 high wage folks) all the way to the first steps in moving the Charlotte executive operations elsewhere (although I have a hard time seeing that since Charlotte is likely the lowest cost spot to maintain those activities).

This is particularly frustrating since it appears (to this uninformed observer) that BoA businesses are going pretty well with the MAJOR exception of Countrywide.

EDIT: Alternatively does anyone see a scenario where some Merrill (or other) activities were moved to CLT in an effort to lower costs? (I have a hard time seeing much of that occur but what do I know)

Edited by kermit, 12 September 2011 - 09:58 AM.

[dbull75]

^I would have a hard time imagining how BofA could justify moving high paying exec jobs out of CLT to NYC as a way of "cost cutting". We all know the cost of doing business down here is substantially lower than NY. If they are truly trying to cut costs they will be trimming more jobs elsewhere than here. Perhaps moving some positions here. However, common sense doesn't always prevail. That all being said, cutting 30,000 jobs company wide isn't good news locally regardless. Some things will be on the chopping block.

[kermit]

Reinforcing my fears about local BoA cuts, the WSJ published this today:

Merrill Lynch Largely Should Evade BofA Knife

[dbull75]

^I was up in NYC last week and had dinner with some friends, one of whom works on the IB side at BofA. We know BofA has moved most of those jobs to Manhattan over the years. He was actually telling me that they have axed a large number of those jobs they moved to NYC from Charlotte, we're talking well over 15% this year alone. He pretty much resigned to the fact that he's going to need to find another job, likely not with BofA, because his position won't exist at this time next year. While Charlotte won't dodge the knife on the job cuts, there are a lot more cuts going on in NYC than most people realize.

[SmellyCat]

Very true.  All the traders and salespeople were shipped to NYC years ago, so that bird has already flown town.  

I don't know how many people fully realize this, but that enormous trading floor that Ken Lewis built in the Hearst Tower is now filled with middle and back office BofA employees.  Needless to say, that's pretty expensive upfit to house back/middle office peeps!!  Nice work, Ken, wherever you are.

Edited by SmellyCat, 23 September 2011 - 03:30 PM.

[kermit]

So this was interesting:

Quote

The [BAC CEO search] committee even agreed to [Robert] Kelly's demand that BofA move its headquarters from Charlotte to New York City, where Kelly owns a sumptuous townhouse.  

http://money.cnn.com...rtune/index.htm

The business journal discusses the article here:
http://www.bizjourna...du_pub&page=all

Edited by kermit, 07 December 2011 - 03:10 PM.

[cltbwimob]

kermit, on 07 December 2011 - 03:09 PM, said:

So this was interesting:



http://money.cnn.com...rtune/index.htm

The business journal discusses the article here:
http://www.bizjourna...du_pub&page=all

Absolutely glad this did not happen.

Edited by cltbwimob, 07 December 2011 - 03:59 PM.

[saamh]

^^^ Wow that really would have been devastating for Charlotte, that is all I can I say...

[dbull75]

I thought I remember hearing about that a while back. Can you imagine the backlash against BofA if this went through? Sounds like Obama and his crew were influential though it was more about his outrageous compensation demands than anything else.