Today there was a report that 20 top BofA executives were let go. The blog eye boogies suggests that the numbers of executives losing their jobs could be in hundreds. Such high profile firings are unprecedented and have caused morale at the company to plummet. Then there is this deceptive headline in a business journal story: “BofA credit card exec’s departure signals trouble.” The story states that Bruce Hammond, a co-founder of MBNA, the credit card company purchased by BofA retired but doesn’t explain why his leaving signals “trouble.”
All of these rumblings amidst the reported layoffs of 30,000-35,000 BofA workers makes me wonder if we should get ready for another Citi Corp-like meltdown. If the credit card division of BofA is in big trouble that might signal the beginning of the next phase of the crisis; credit card company meltdown.
Tags: Bank of America, banking industry, credit card companies, Layoffs
Reading Tea Leaves by Randy Wilson 
January 15, 2009 at 6:52 am |
[…] Bank of America is too big to fail By Randy Wilson Back in mid-December I posted about B of A firing a bunch of executives in a move that seemed desperate and worrisome. Today we […]