BoA starts retreat from investment banking

Bank of America is sacking 3,000 people, mostly from its investment banking arm, after chief executive Kenneth Lewis hinted the bank might be leaving the investment banking business.

Bank of America lost $1.4 billion in the third quarter of the year, which Lewis blamed on poor management and a declining market. "On the trading side, I would say that maybe a third was the market, and two-thirds were mistakes we've made in judgement. So clearly we bear a lot of the blame, much more so than just market conditions," Lewis told a conference call on October 18.The bank will sack 3,000 employees from various units. "The majority are corporate and investment banking related, spread through business lending, treasury services and capital markets and advisory services, as well as supporting infrastructure," Bank of America said in a statement today.Lewis said during the October 18 call: "I have had all the fun I can stand in investment banking at the moment... we have to go back and assess all these businesses and see where our strengths are and act accordingly." He added: "I would say the probability of changes and elimination of some businesses and infrastructure is very high." The bank also named Brian Moynihan as president of global corporate and investment banking, replacing Gene Taylor, who will retire at the end of the year. Moynihan was previously president of global wealth and investment management; he will be replaced in turn by Keith Banks, previously president of the bank's asset management arm, Columbia Management.