Bank of America’s profits are down 32%, prompting CEO Kenneth D. Lewis to make some angry promises.
From the Wall Street Journal:
“Two-thirds was just mistakes we made in judgment,” Mr. Lewis told analysts on a conference call. “Clearly, we bear a lot of the blame, much more so than just market conditions.”
“There will be some places we do things differently,” Mr. Lewis said in an interview. He added that he is considering scrapping entire investment-banking businesses and has all but ruled out a near-term acquisition or joint venture to try to shore up the unit. Mr. Lewis told analysts he has had “all the fun” he can take from investment banking.
Mr. Lewis even raised the possibility of scaling back the business to its revenue and expense levels of roughly two years ago. That suggests job cuts are looming for the 20,000 corporate and investment-bank employees.
We don’t know what he’s so worried about. Surely, those $3 ATM fees will return Bank of America to its former glory in no time.