From Bloomberg News (The article can be found here):
Bank of America wrote off more than $15 billion in home and credit-card loan losses during the first three quarters of 2009, amid signs that the U.S. housing market is now stabilizing. New Chief Executive Officer Brian T. Moynihan, 50, promised to focus on improving operations after his predecessor Kenneth D. Lewis spent more than $120 billion on acquisitions since 2004.
The terms in the quote have very specific meanings. “Improve Operations” means reduce costs and cut people. “$120 billion in acquisitions” means that there is a lot of fat. When Dupont went through its major downsizing, it always announced layoffs. The credit card banks don’t do that, so the job losses are stealthy, but just as real.
What are the problems with consumer credit? From Business Week (The whole article can be found here):
Bank of America Corp. Chief Executive Officer Brian Moynihan named finance chief Joe Price to head consumer banking, the biggest unit at the largest U.S. lender, seeking to curb losses in a $70 billion credit-card portfolio…
Bank of America has the highest credit-card default rate of any of the six-biggest U.S. card issuers, a distinction the lender has held since April. Moynihan said in an interview last week that card defaults are “still very high” and he’s “reworking” consumer lending.
This does not bode well for employment in Delaware.