The canning campaign begun yesterday at Bank of Amerillwide proceeds at a pace, and is expected to continue through Friday and into next week. Apparently the employees relieved of their duties yesterday were given 3-months plus 2-weeks for every year of service, no bonus. According to one current (and, fingers crossed, future) worker, three rounds of cuts are planned. He (Angelo Mozilo) added:
GCIB is pretty much set and Merrill has won most of the battles, you can tell by looking at the organization chart that was on the transition website.Within GWIM there have been turf battles but things are starting to get settled, especially with the most recent departure on the brokerage side. The lower producing FAs who didn't get large retention packages liked McCann and are marking their discontent known.
A second round is scheduled for May and is contingent upon the economic environment.
There is a tentative third round planned for later in the year once things begin to settle out but don't know much more about this.
Posted by guest , Jan 08, 2009 10:03AM
What happened to the Rates and Currency group?
Posted by guest , Jan 08, 2009 10:08AM
@1
All gone.
Posted by guest , Jan 08, 2009 10:15AM
All these banks need to cut their common stock divdidend like yesterday. How can they pay dividends to shareholders when they need capital AND are not profitable?
Posted by guest , Jan 08, 2009 10:19AM
Better than what Citi gave...
Posted by guest , Jan 08, 2009 10:21AM
@3 Don't underestimate the amount of people who continue to own bank stocks because of the dividends. Maintaining a steady dividend has always been a signal of strength to the market (even if your stock is down 50%+.) You cut the dividend and you unleash a wave of selling that you can't blame on the shorts.
Posted by Investorcluzo , Jan 08, 2009 10:25AM
ouch! didn't the group of folks who got hit by wideclops last year sue? I heard that they ended up winning and getting something like 40% - 50% of their prior year bonus (vs the 10% they were originally given). no bonus in jan is ridiculous - it's been stated before, salary in the business doesn't cover the mortgage...
Posted by guest , Jan 08, 2009 10:25AM
@5 look at what has already happend to the stocks...say BAC cuts the dividend it may drop to what 10? 8? 7? its almost there. Plus the common shareholders are going to continue to be diluted to high heaven with the need for additional capital, at least cut the dividend rebuild the capital base and let dividend investors move to other sectors. One they rebuild the capital base and make money they can pay the dividend again. What good is having a 8% dividend when your principal drops 20%?
Posted by guest , Jan 08, 2009 10:28AM
Were there any cuts in FX sales?
Word on the street is that the most overlap in fixed income world is with several non-producing fx salespeople especially in the corporate and hedge fund area.
Posted by guest , Jan 08, 2009 10:29AM
@6:
"No bonus in January is ridiculous". C'mon, writing such nonsense is ridiculous. You will learn that's why it's called "variable" or "discretionary" compensation, because Kenny Lew et al can give you whatever the hell they want to...or not. Besides, with the limited funds available to pay any bonus this year, who you gonna feel compelled to give those pennies to? The guy you're trying to keep, or the one you blew out the door....?
Posted by guest , Jan 08, 2009 10:30AM
@8
FX sales gone
Posted by guest , Jan 08, 2009 10:33AM
@5, @7: Look how much stock senior management owns. If they own a lot, dividend will be last to be cut. When looking at comp, no one counts the dividends, it is "double secret probation" money.
Ken Lewis owns 1.8 million shares. At $1.28 dividend per share, that is $2.3 mil a year in additional income to him. How eager do you think he is to cut that, when he is so nobly taking no salary?
Posted by guest , Jan 08, 2009 10:34AM
which group ML fx sales or BofA fx sales? very ubiquitous comment #10.
Posted by guest , Jan 08, 2009 10:36AM
@11, LOL...the fact that you think ken lewis' personal interest has anything to do with his disposition on the dividend makes think you oughtta go back for a refund on that Univ of Phoenix MBA...laughable.
Posted by guest , Jan 08, 2009 10:38AM
What about equity sales on either side?
Posted by guest , Jan 08, 2009 10:38AM
Zeros getting paid everywhere. Even the vaunted GS.
Posted by guest , Jan 08, 2009 10:38AM
@13 you're pathetic. what do you gain by knocking someone's education?
Posted by guest , Jan 08, 2009 10:40AM
@11. You're also a moron if you think KL doesn't consider his dividend in the same thought as he considers BoA policy. It's inconcievable not to. Are you human?
Posted by guest , Jan 08, 2009 10:42AM
Saved by zero
Saved ... by ... zero
Posted by guest , Jan 08, 2009 10:42AM
Hi Guys. I am switching careers and would like to get into i-banking from engineering. (2 years out of Penn undergrad.) Can anyone recommend a recruiting firm I should reach out to? Thanks. Sorry for the cross-post.
Posted by guest , Jan 08, 2009 10:44AM
I am sure as a common shareholder Kenny boy would like to not get dilluted either regardless of the dividend payout. Unfortunatly when you need capital youve got to dilute shareholders.
Posted by guest , Jan 08, 2009 10:45AM
19 = Vartanian
Posted by guest , Jan 08, 2009 10:47AM
It's not quite true that there is a 0 bonus. Bonus will be paid in the future to laid off employees when everyone normally gets their bonus. They just don't know what it will be yet (or weren't told). The other numbers are ture.
Posted by guest , Jan 08, 2009 10:51AM
@22 still a better deal than was given to people late last year, where they absolutely did not get 3 months in addition to 3 weeks for every year and a morsel of coin.
Posted by guest , Jan 08, 2009 10:51AM
More stories about the Noels, Madoffs and Vartanians.
Posted by guest , Jan 08, 2009 10:58AM
@23 the difference is apparently that these terminations are considered a "reduction in work force" and therefore given relatively decent severance whereas the previous terminations were not.
Posted by guest , Jan 08, 2009 10:59AM
@19 you'll make more money in engineering these years..
Posted by guest , Jan 08, 2009 11:01AM
2 & 10 is giving bad information. stop
Posted by guest , Jan 08, 2009 11:04AM
@25 you could not be posting more incorrect information. Halloween RIFs were handed down in the ML front office last year. Those were all "reduction in work force" or as ML called them "RIF's". Anyone now getting 3 months in addition to 3 weeks for every year should be happy. B of A much kinder than ML was.
Posted by ab , Jan 08, 2009 11:05AM
@12
"ubiquitous"?
Posted by guest , Jan 08, 2009 11:08AM
@2 and @10, pretty sure you are both wrong. BAC guys are running both groups.
Posted by guest , Jan 08, 2009 11:09AM
Can someone actually post factually info.
Posted by guest , Jan 08, 2009 11:09AM
Can someone actually post factual info.
Posted by guest , Jan 08, 2009 11:09AM
Can someone actually post factual info.
Posted by guest , Jan 08, 2009 11:11AM
@31, 32, 33 ever learn how to use a computer? or just keeping it real???
Posted by guest , Jan 08, 2009 11:12AM
learn to spell, in your mug!
Posted by cy , Jan 08, 2009 11:15AM
Preferably in triplicate.
Posted by guest , Jan 08, 2009 11:15AM
@28 this is a post about BofA...not ML.
Posted by guest , Jan 08, 2009 11:17AM
@2 and @10 wrong today. all the busy beavers in both shops are flashing green on their bloombergs. stop spreading bad information.
Posted by guest , Jan 08, 2009 11:17AM
http://www.youtube.com/watch?v=m54bAfxgYPw&fmt=22
Posted by guest , Jan 08, 2009 11:18AM
Hi. I am a teller. Do you think my job is safe? Please help! I can haz no depozits?
Posted by guest , Jan 08, 2009 11:18AM
@31-33- i think, therefore i am.
Posted by guest , Jan 08, 2009 11:18AM
Hi. I am a teller. Do you think my job is safe? Please help! I can haz no depozits?
Posted by guest , Jan 08, 2009 11:21AM
@31-33: you're a fucking idiot. all of this is true.
-- someone was laid off from BAC yesterday
Posted by guest , Jan 08, 2009 11:23AM
@43 do u know what groups and which place
Posted by Clown Capital , Jan 08, 2009 11:24AM
WTF is up with that caption of Johnny T and Kenny?
Thain: (I can't wait for this part, (giggle), tell em' Ken, tell em! (giggle))
Lewis: "As we position ourselves for the future, we must re-evaluate our business functions and personnel requirements..."
Jerks...
Posted by guest , Jan 08, 2009 11:26AM
@19: I am thinking of jumping off of a cliff. Do you know where I can find one?
Posted by guest , Jan 08, 2009 11:42AM
here's a fact: pushing the "post comment" button multiple times will result in multiple submissions.
Posted by guest , Jan 08, 2009 11:42AM
Severance is two weeks of salary per year of service with some bonus likely to be announced later in Jan.
Equity sales/trading at BofA will hear in about two weeks. Interviews done en masse on the floor in recent days. Unlikely to be pretty.
Equity research analysts on guarantees after management fucked the department in Jan 08 (30% headcount reduction two days before bonuses with jack shit, those left behind shafted) and will receive those bonuses in Feb.
Now BofA is MER there may be a reputational reason for treating employees with a modicum of respect. Alternatively, Ken could just drive a whole new business into the ground.
Posted by guest , Jan 08, 2009 12:12PM
The severance is two weeks for each year with a minimum of three months. There is no bonus because it was paid out already on the Dec 31st. Get your facts right Bess!
Posted by guest , Jan 08, 2009 12:14PM
Hey that's not so bad. I got fired in December 2007 right before receiving a $600k bonus. They gave me snatch. Should I sue sue sue?
Posted by guest , Jan 08, 2009 12:14PM
Nice pic of the new master morons of the universe.
Posted by guest , Jan 08, 2009 12:15PM
@19
I would assume you're joking, but the post sounded so serious...are you just plain retarded?
Posted by guest , Jan 08, 2009 12:19PM
Most of the cuts this week were in the back and middle offices, technology, etc. The front office cuts haven't occured (they will be the week after next) because the new management teams at those levels needed more time--they are still running as separate businesses until January 23rd or so. There were also a substantial number of people who "raised their hands" after year-end bonus (or lack of one) who were included. The numbers that have been communicated within global markets are a reduction by about 50% of the staff--from a combined 8000 people to a combined 4000 people.
Posted by guest , Jan 08, 2009 12:19PM
@49- WRONG.
Posted by guest , Jan 08, 2009 12:21PM
@49 Bess's facts are essentially right and your's are wrong.
MER bonuses were paid on Dec 31.
BofA bonuses to be announced ~Jan 25, paid ~Feb 15.
Different Year Ends, you see.
Posted by guest , Jan 08, 2009 12:30PM
The severance will be four months salary for employees up to 5 years of service; then they will get 3 weeks for each year of service. But it's not additive; 6 year of service = 18 weeks, not 4 months plus 3 weeks (19 weeks total). This is pretty much the same as the old MER policy. One feature is that restricted shares are going to be converted to cash as opposed to staying restricted on their old vesting schedule (the same for options I think). Depending on your view of the stock at these prices (and incurring an additional tax event) you either like this feature or you don't.
Posted by guest , Jan 08, 2009 12:33PM
@55 not different year ends, MER had Dec Y/E and historically communicated / paid bonus in Jan. BofA wanted all the MER 2008 expenses (incl bonus) paid prior to closing the deal on Jan 1.
Posted by guest , Jan 08, 2009 12:37PM
@56 how do you convert options to cash when they're massively below strike and have no time value?
Posted by guest , Jan 08, 2009 12:42PM
@58 You dont - not like they will end up in the money anytime in the near future...
Posted by guest , Jan 08, 2009 12:45PM
@58 You dont - not like they will end up in the money anytime in the near future...
Posted by guest , Jan 08, 2009 2:22PM
Answer to #58--I haven't seen the language yet but I do believe they leave your with those and when they convert, they convert for cashless exercise only. The reason for these actions is that BofA doesn't want to entail further dilution of the stock--at MER, 2008 and 2009 are very large stock vesting years as it is based on the fact that they changed the plan a few years back and you capture two "overlap years" where essentially you had 3 year and 4 year stock vesting. So this was an opportunity to reduce the impact via the RIFs and just cash people out.
Posted by guest , Jan 08, 2009 2:37PM
@ EVERYONE
you all are idiots
Posted by guest , Jan 08, 2009 2:42PM
Do you guys know what first year analysts collect since they don't have > 6 months of service?
Posted by guest , Jan 08, 2009 3:00PM
@63 fuck all
Posted by guest , Jan 08, 2009 3:28PM
the guys who sued did so because the closed real business that year.
you can't claim a bonus if you spent the whole year with your thumb up your arse
Posted by guest , Jan 08, 2009 3:33PM
Please just use some sort of rationallity....everyone needs to calm down. bonuses are just not that big a deal. Living off of $60-$150K is easy and all these analysts and associates need to calm down. an education only costs ~$5k at houston community college. go get one in a down market and invest in the future!! www.hccs.edu
Posted by guest , Jan 08, 2009 3:34PM
Ken Lewis gave me the AIDS
Posted by guest , Jan 08, 2009 3:49PM
Please just use some sort of rationallity....everyone needs to calm down. bonuses are just not that big a deal. Living off of $60-$150K is easy and all these analysts and associates need to calm down. an education only costs ~$5k at houston community college. go get one in a down market and invest in the future!! www.hccs.edu
Posted by guest , Jan 08, 2009 3:49PM
Please just use some sort of rationallity....everyone needs to calm down. bonuses are just not that big a deal. Living off of $60-$150K is easy and all these analysts and associates need to calm down. an education only costs ~$5k at houston community college. go get one in a down market and invest in the future!! www.hccs.edu
Posted by guest , Jan 08, 2009 4:00PM
WHY DO PEOPLE INSIST ON POSTING THE SAME STUPID MESSAGE 3 TIMES
Posted by guest , Jan 08, 2009 4:03PM
Wood is still at BofA muggin out...
Posted by guest , Jan 08, 2009 4:03PM
@70, most likely because they work at either Countrywide BofA or Merrill and the internet servers have not been merged yet?
Posted by guest , Jan 08, 2009 4:06PM
Wood is still at BofA muggin out...
Posted by guest , Jan 08, 2009 4:38PM
there aren't any jobs out there. what about selling pretzels in front of the building where you used to work.
http://endofesq.com/alternate_careers.html
Posted by guest , Jan 08, 2009 4:43PM
@61 Makes sense. Thanks and good call.
Posted by guest , Jan 08, 2009 5:49PM
Is it "investor" or "inwestor'?
Posted by guest , Jan 08, 2009 5:57PM
is it trader or twayda?
Posted by guest , Jan 08, 2009 6:22PM
I work in Ops in India as document filing analyst for major Americian bank. I have AAACFAMBA. How can I become trader for hedge fund.
Posted by guest , Jan 09, 2009 10:05AM
@78 Start taking estrogen and get in touch with Stevie Cohen.
Posted by guest , Jan 09, 2009 10:54AM
21st is the day ... thousands to go at MER(fmr.)
Posted by guest , Jan 09, 2009 1:51PM
@80, then the people I am watching walk out the door with boxes of their stuff today are just practicing?
Posted by guest , Jan 09, 2009 4:23PM
Welcome to the jungle rich get richer poor get poorer... Sad
Posted by guest , Jan 09, 2009 4:24PM
Welcome to the jungle rich get richer poor get poorer... Sad
Posted by guest , Jan 09, 2009 5:26PM
Do they even have a transition website? If so what is the link?
Posted by guest , Jan 09, 2009 6:01PM
Welcome to the jungle rich get richer poor get poorer... Sad
Posted by guest , Jan 09, 2009 6:03PM
Welcome to the jungle rich get richer poor get poorer... Sad
Posted by guest , Jan 09, 2009 7:12PM
@81 merely some practice for the big event(s) to come
Posted by guest , Jan 12, 2009 10:48PM
It's going to be very, very bad. Watch for more big names at MER to leave within weeks.
Posted by guest , Jan 12, 2009 10:49PM
It's going to be very, very bad. Watch for more big names at MER to leave within weeks.
Posted by guest , Jan 12, 2009 10:50PM
It's going to be very, very bad. Watch for more big names at MER to leave within weeks.
Posted by guest , Jan 12, 2009 10:51PM
It's going to be very, very bad. Watch for more big names at MER to leave within weeks.
Posted by guest , Jan 12, 2009 10:52PM
why do the comments keep repeating?
Posted by guest , Jan 12, 2009 10:53PM
why do the comments keep repeating?
Posted by guest , Jan 13, 2009 8:35AM
I think it's a ponzi scheme trying to get the comment count up on the discussion thread.
Posted by guest , Jan 13, 2009 8:54AM
here's a fact: pushing the "post comment" button multiple times will result in multiple submissions.
Posted by guest , Jan 13, 2009 8:55AM
here's a fact: pushing the "post comment" button multiple times will result in multiple submissions.
Posted by guest , Jan 13, 2009 10:00AM
u dnt say ...
Posted by guest , Jan 13, 2009 3:31PM
Not to worry:
http://news.yahoo.com/s/afp/20090113/od_afp/lifestyleaustraliatourismoffbeat_20090113032028
Posted by guest , Jan 14, 2009 12:47PM
I was in favor of capitalizing the banks. It was necessary to prevent collapse. Still, there needed to be specific guidelines for salary and bonus (a.k.a deferred compensation). To use taxpayer money to keep private enterprises from going bankrupt while allowing employees who contributed to the extreme leveraging that lead to the financial crisis to walk away with bonus or months of severance is irresponsible. Free market means if you lose, you lose. There must be a downside for risk-takers, otherwise the market won't function as it should. - viv
Posted by guest , Jan 14, 2009 8:14PM
It is impolite to call Ken Lewis a redneck, a pedophile or a retard. Believe me, he knows what he is doing. Just look at the stock price.
Posted by guest , Jan 14, 2009 8:44PM
When the mess finally settles down, BOA will rule America and have fat profits. Its going to be turmoil, but who knew it could be 1932 again.
Posted by guest , Jan 14, 2009 9:34PM
@101 You are truly an idiot. Take off your gaywad flagscape lapel pins - one is more than enough - and try thinking for a change.
Posted by guest , Jan 14, 2009 9:50PM
If you only saw the amount of useless paperwork this integration is producing, you would know merrill will be a raging success! I don't care if a tomato farmer took ten minutes to do the due diligence, or that shareholders were grossly defrauded even though ken lewis knew this was a putrid time bomb when the vote was held!
Posted by guest , Jan 15, 2009 9:00PM
@101 stop drinking the kool-aid. KL will take you down with him. KL is going down.