PLEDGE NOW
Turbulence In The Banking Industry

We’re talking about Bank of American slashing 30,000 jobs and what it means.

Bank of America's corporate headquarters is shown in Charlotte, N.C. (AP)

Bank of America's corporate headquarters is shown in Charlotte, N.C. (AP)

Bank of America, the biggest bank in the country, announced this week it is cutting thirty thousand jobs. 30,000. That is a number big enough to get anyone’s attention. The biggest jobs cutback announced in the country this year. What does it mean?

Well, a lot of pain for a lot of families. A lot of pain at Bank of America, which built an empire with way to much bad mortgage debt.

Is there more to come? At other banks? Is it the end of “too big to fail”? Of the financialization of the American economy? We’ll ask.

This hour On Point: Bank of America’s job cuts, and what they mean.

-Tom Ashbrook

Guests

Paul Barrett, assistant managing editor at Bloomberg Businessweek. His cover story, for this week’s issue is “Can Brian Moynihan Save Bank of America?

Louise Story, business reporter for the New York Times.

Campbell Harvey, professor of international business at Duke University’s Fuqua School of Business.

From Tom’s Reading List

Bloomberg Business Week “For now, Bank of America will not go the way of Lehman or Bear. It has $400 billion in cash and liquid investments and, more important, with $2.3 trillion in assets, it exemplifies the sorry concept of “too big to fail.” No matter what anyone says to the contrary, the U.S. government cannot afford to allow a financial institution of that size to go down and drag the rest of the country with it. ”

Associated Press “Bank of America is slashing 30,000 jobs as part of an effort to reverse a crisis of confidence among investors. It’s the largest single job reduction by a U.S. company this year”

Wall Street Journal “A following phase of the project will seek to reduce part of the bank’s $28 billion in expenses on commercial banking, wealth management, corporate banking and investment banking. The bank didn’t specify a target or job cuts for those lines of business, but said the cuts would be smaller.”

Please follow our community rules when engaging in comment discussion on this site.
ONPOINT
TODAY
Feb 11, 2016
In this Oct. 21, 2013, file photo, Vern Lund, president of Liberty Mine in central Mississippi near DeKalb, Miss., holds some of the lignite coal planned for use in the nearby Mississippi Power Co. carbon capture power plant. (AP Photo/Rogelio V. Solis, File)

The Supreme Court hits the brakes on the heart of President Obama’s push to fight global warming. We’ll dig in.

Feb 11, 2016
A sampling of same of the great books author David Denby thinks could help encourage young readers to love books. (National Post)

David Denby on the 24 great books that can bring even today’s kids to reading. And maybe you, too.

RECENT
SHOWS
Feb 10, 2016
In this Feb. 1, 2016 photo, a technician from the British biotec company Oxitec, inspects the pupae of genetically modified Aedes aegypti mosquitoes, a vector for transmitting the Zika virus, in Campinas, Brazil. (AP Photo/Andre Penner)

Taking on the Zika virus, from tackling the disease itself, to killing the mosquitoes that carry it to the challenge of birth control.

 
Feb 10, 2016
Democratic presidential candidate Sen. Bernie Sanders, I-Vt., waves to the crowd before speaking during a primary night watch party at Concord High School, Tuesday, Feb. 9, 2016, in Concord, N.H. (AP Photo/John Minchillo)

The winners and losers in New Hampshire, and the path ahead in the presidential primary race.

On Point Blog
On Point Blog
Notes From New Hampshire, #9: Remedy Or Replica?
Wednesday, Feb 10, 2016

Jack Beatty offers one last note from New Hampshire, and looks beyond to the primary races yet to come in both parties.

More »
Comment
 
Tom Ashbrook’s Note From New Hampshire
Tuesday, Feb 9, 2016

Fresh off the New Hampshire Presidential Primary results, host Tom Ashbrook reflects on his trip to New Hampshire, and on what comes next in the race to the White House.

More »
Comment
 
Notes From New Hampshire, #6: Bernie v. Hillary — The Electability Debate
Monday, Feb 8, 2016

Bill and Betty are not real New Hampshire voters. But their arguments about the Democratic race for President most certainly are.

More »
Comment