Job No. 1 for Brian Moynihan upon taking over Bank of America’s corporate and investment banking unit may be convincing his colleagues that the shop will remain open for business. After BofA announced a 93 percent drop in the division’s third-quarter profits, CEO Ken Lewis famously declared, “I’ve had all the fun I can stand in investment banking.” Pink slips are starting to fly. Announced job cuts of 3,000 bankwide are expected to include about 500 in investment banking. Moynihan, who had overseen Global Wealth & Investment Management, last month replaced R. Eugene Taylor.
Though he will ultimately preside over a smaller business, Moynihan stresses that BofA will continue to support activities important for hedge funds, private equity firms and commercial clients. “The idea is to review the operating model, look at the market and make sure that we continue to invest in areas that will be in demand.”
