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Bank of America (BAC +2.2%) takes out a new 52-week high, rising on back of the Citigroup's plan...

Bank of America (BAC +2.2%) takes out a new 52-week high, rising on back of the Citigroup's plan to cut 11K jobs. Citi will take a $1B charge in Q4, but save more than $2B over two years - a pretty nice return on investment. The XLF +0.7%.
Comments (11)
  • So cutting 11000 jobs to save $1B (saving $2B over 2 years) is a return on investment. Is cutting the jobs the investment?
    5 Dec 2012, 09:46 AM Reply Like
  • Exactly, divestor. It's a sick cycle where tax policy favors larger corporations, and with the majority of large corporations publically owned, each penny in each quarter's results is the overwhelming emphasis - not providing jobs or supporting a local community. Profit is not enough. A lot of profit is not enough. No, it must be more profit than was projected by Wall Street. Anything less and the stock will be punished... so we get this sick cycle where cutting jobs to make more money in profit is an applauded exchange, regardless of how much profit the company was already making.

     

    No doubt that money will serve a far greater purpose sitting in reserves (or in SPY futures, as might be more likely) than it would providing food, shelter and consumption fuel for 11K human beings. Right.

     

    There is no sense of corporate responsibility to a community. No doubt the explosion of multi-national monoliths is the overwhelming factor in the dehumanization of communities in the eyes of executives, but it is still sad, and will still prove to be destructive in the long run, imho.
    5 Dec 2012, 09:55 AM Reply Like
  • Guess that's why the gov keeps wanting to raise taxes so business has to shed jobs for better profits and making the economy look good. LOL.
    5 Dec 2012, 03:00 PM Reply Like
  • Obama intends to take us over the cliff so that taxes on the wealthy and on the middle class will be raised and he can blame it on the Republicans. This will give him more money to waste and to purchase votes, maybe he will upgrade his supporters phones to IPhones. Obama has the maturity of a 12 year old, he is unable to take responsibility for anything after four years in office he still blames his failures on Bush. Personally I don't care if the employment rate gets to 25 percent. It won't affect me. And it is time the people of this country get what they voted for.
    7 Dec 2012, 02:53 AM Reply Like
  • Citi is still bloated and fat.
    5 Dec 2012, 09:51 AM Reply Like
  • Rumor of a large EOY payout?
    5 Dec 2012, 09:57 AM Reply Like
  • They want those losing their jobs to get severance pay in 2012 before the taxes go up in 2013.
    5 Dec 2012, 09:58 AM Reply Like
  • Anyone know what kinds of jobs are being shed? I'd guess at those bottom end functions which can be automated (which most banks worldwide are intent on maximising; this "stress test" is just an excuse) in which case, say hello to more formulaic responses, and any questions not foreseen by the programmer, being ignored completely.

     

    To my mind, the worst thing about these "box checking" excercises is that, instead of being seen as "works in progress" in constant need of evaluation and amendment, the consensus in the world of banking seems to be that they where not written by fallible humans, but rather by an omniscient being who set them in tablets of stone.

     

    At least, that's how it seems to me, as, once you get caught up in one of the oversights, no amount of persuasion will get the banks officers to change anything, nor override them, never mind how ludicrous the outcome. Believe me, I've suffered a lot from this recently, and nothing less than a court order will get these peoples' attention!

     

    Welcome to the brave new world: the future is already here...
    5 Dec 2012, 11:02 AM Reply Like
  • Not sure of the link betwenn citi and BAC?
    Can somebody explain???
    5 Dec 2012, 12:48 PM Reply Like
  • New credit card and loan fees and service chgs for commerical clients will make up for the lack of staffing. CIti is a noncompetitive bank in a number of ways and now it will push investment banking over commercial to give GS WFC and BAC some pressure. But consumers will lose services.
    5 Dec 2012, 01:56 PM Reply Like
  • This crisis has always been about the derivatives, worthless derivatives, part of the $700 trillion global derivative market. They break them down on usdebtclock.org. There were between 11 to $13 trillion in worthless credit default swaps back in 08, $23 trillion of them today. Good to see they learned their lesson. Too bad so many have to suffer for their over-leveraged bad bets
    5 Dec 2012, 05:49 PM Reply Like
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