Make Kitco Your Homepage

Market News

Bank of America to redeploy wealth management, banking employees - source

Kitco News

March 24 (Reuters) - Bank of America Corp (BAC.N) is redeploying employees in wealth management and lending to other roles within the company, a source familiar with the matter said on Friday, as higher interest rates continue to weigh on the businesses.

Less than 200 employees are being moved to product specialist positions within the company's global operations organization, the source told Reuters.

"As our business and client needs grow and evolve, our focus continues to be on aligning our team to areas of greatest need. Based on current market conditions, we are re-aligning talent to support these areas," a Bank of America spokesperson said.

The news was first reported by Bloomberg on Friday.

The move highlights the broader weakness in Wall Street banks' mortgage and wealth management businesses in a rising interest rate environment.

Interest rate hikes by global central banks to tame elevated levels of inflation have weighed on consumer and corporate spending, affecting the outlook for Wall Street heavyweights such as Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N).

Wells Fargo & Co (WFC.N) slashed hundreds of jobs in its mortgage business across the U.S., Bloomberg News reported in December.

Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shilpi Majumdar
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.