Ever since the real estate issues hit the fan, key banks like Bank of America have been continuously on the news for everything from robo-singing and wrongful foreclosures to the bank settlement debates.
In August, Bank of America even made some huge structural changes to their real estate division.
But now, the bank hits the news for other reasons-laying off industrial bankers and selling commercial real estate loans.
Bank of America Layoff 13 Investment Bankers
Bank of America has moved forward with layoffs totaling 3,500 for the first round, thirteen of which were investment bankers.
However, the layoffs are not ending here as the bank expects to get rid of another 30,000 positions.
These layoffs are occurring due to bank settlement talks and falling stocks, which have declined approximately 50% over the course of a year.
These layoffs come at a time when the unemployment rate is already ridiculously high, which will leave many of these individuals seeking jobs in a tough job market that will probably not improve in the very near future.
Fortunately, these layoffs will not come all at once and will be spread out.
Bank of America Sells Commercial Real Estate Loans
Along with firing 3,500 employees, Bank of America has also sold $880 million worth of commercial real estate loans in an effort to cut its assets.
The deal includes both non-performing and performing loans, which were sold to investors with deep pockets.
The final price was discounted up to 25%, providing a quick release for the bank and a great investment opportunity for the investors.
It would not be shocking to see Bank of America put more of their commercial inventory on the market if things continue to be tough on major banks (not that it is not deserved).
So keep your eye on the market to see what next great opportunities are out there for investors as banks like Bank of America become desperate.
It is clear that Bank of America, like many other struggling banks, are paying for their low lending requirements and robo-signing that put our real estate market in its current state of distress.
Now, these banks have to cut costs in order to make ends meet.
Unfortunately, Bank of America’s plan to cut costs includes firing approximately 30,000 people in an already rocky economy with a very high unemployment rate.
Along with cutting the number of paychecks they have to write, Bank of America is also selling off parts of its commercial real estate portfolio that totals around $44 billion.…