Bank of America plans to lay off between 30,000 and 35,000 employees over the next three years. The bank blamed the cuts on the weak economic environment and its impending merger with Merrill Lynch.
More European and US banks joined the growing list of institutions to cut staff in the wake of the financial crisis.
The cost of credit protection on UK banks increased in early trading this morning, while US financial institutions experienced mixed market sentiment.
Losses and Lawsuits
Members of the Chicago Board Options Exchange (CBOE) re-elected six incumbent directors to its board on November 20.
UK and European financial institutions faced declining market sentiment in early trading today, while the cost of credit protection on US banks continued to rise.
Merrill Lynch has launched an 18-month bear market review note linked to the Dow Jones US Real Estate Index offering a premium of 14.8% and a potential early return as well as a known underlying
Several Merrill Lynch executives will step into leadership posts after the bank's $50 billion takeover by Bank of America, set to close in the first quarter of next year.
Hit by continuing credit problems and mortgage-related losses, Citigroup and Merrill Lynch saw their profits fall sharply in the third quarter of 2008.
The cost of credit protection on UK banks fell further in early trading today following the unveiling of a £50 billion government rescue plan on Wednesday, but US markets remained unstable.
Bank of America and Royal Bank of Canada (RBC) yesterday agreed to buy back up to $5.5 billion of auction rate securities (ARS) they issued, becoming the latest banks to reach an agreement in principle with the US Securities and Exchange Commission (SEC).
Credit default swaps (CDSs) on a number of major dealers widened yesterday in spite of the US Senate vote on a revised $700 billion financial rescue plan.
The cost of protection on some of the world’s largest financial institutions fell yesterday as the US Senate agreed to vote on a revised version of the $700 billion financial rescue plan.
The cost of protection on some of the world’s largest dealers surged on Friday as uncertainty grew over the US government’s $700 billion plan to purchase devalued assets from financial institutions.
Credit default swap (CDS) spreads on financial institutions had tightened further by close of play on September 19, as market confidence continued to rise after large injections of cash from central banks
Credit default swap (CDS) spreads on financial institutions tightened yesterday as market confidence improved following a range of measures from central banks.