Tuesday, December 6, 2011

BofA is better off than it was in 2008, says its CEO. So what's with all the layoffs?

Posted By on Tue, Dec 6, 2011 at 12:32 PM

You can't trust a banker. Bank of America's latest spin is that the company is in better shape than it was in 2008 — when the bailouts happened. But why on earth would we believe the scripted words of CEO Brian Moynihan at this point?

Still, everything is hunky dory, according to a one-source story in The Charlotte Observer — the once source being Moynihan, of course.

The bank's balance sheet is markedly improved since the second half of 2008 - the most significantly stressed time in recent memory.

"We continue to position ourselves and make sure we are in good shape to last through anything we see ahead," Moynihan said while speaking at the Goldman Sachs U.S. Financial Services Conference in New York City.

The bank's total loans and leases have declined by nearly $200 billion since the third quarter of 2008, and the new portfolio is significantly less risky: fewer car and commercial real estate loans.

If everything is so great, why is BofA laying off so many workers? It's shedding jobs like contestants on The Biggest Loser drops pounds.

Reportedly, 30,000 workers will lose their jobs at BofA. But the bank is in great shape? OK.

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