Skip to main content

Bank Of America: Hungry Like The Wolf

  • Author:
  • Updated:

Wall Street loves to describe itself as various animals. Given. You've got your bulls and bears of course, but many firms like to put their own original spin on things. For instance, at Bridgewater, employees are told to "be the hyena, attacking the wildebeest." And at Bank of America, according to a new book by Greg Farrell, at least under the regime of Ken Lewis and his underboss Steele Alphin, they were wolves.

"We're like the wolf," Alphin said, leaning over his chair, a playful smile on his face. "The wolf doesn't hunt for packs of animals. It stays behind the pack and looks for the weak ones that can't keep up, or the ones who wander from the pack." [Greg] Fleming was transfixed. "My advice to you is to stay up front with the herd," Alphin said, warming to his topic. "Stay at the front of the pack. If not, the wolf will get you. And remember, the wolf is hungry and rarely fails." Fleming started to say something but didn't know what to say. Alphin continued. "It's your decision, but the view is better from the front of the pack. Do know there is a wolf there and he will get you. And the wolf is hungry." Alphin made a playful biting gesture with his hand, in case Fleming didn't grasp the meaning of his words. "He'll git you."

The Wolfman Of Bank Of America [Daily Intel]


Layoffs Watch '12: Bank Of America

Project New BAC continues, only now that it's worked out some of the initial kinks, management is going to fire people a lot faster that before. Chief Executive Officer Brian T. Moynihan, 52, is relying on expense cuts to improve profit as mortgage losses and regulation squeeze revenue. The earlier phase of his efficiency plan, called Project New BAC, targeted $5 billion in costs and 30,000 jobs...The lender had 275,460 employees at June 30, compared with 278,688 on March 31 and about 288,000 at the end of last year’s second quarter. The number of banking centers in the U.S. fell by 148 in the 12 months ended June 30 to 5,594...The new round of cost cuts will come at a faster rate than the first phase, Chief Financial Officer Bruce Thompson said today on the call. The $3 billion in savings will probably be realized at about $1 billion per year, he said. Moynihan told employees in January that he expected Project New BAC to eliminate a total of $6 billion to $8 billion a year in expenses, Bloomberg News reported. The bank said today it’s on track to realize $1 billion of the cost savings from the first phase by the end of this year. [Bloomberg]