Thousands of jobs are expected to be lost at Merrill Lynch, the once upon a time Wall Street investment bank that was taken over by Bank of America Corp almost a month ago. Merrill Lynch Co. only recently eliminated more than 5,000 jobs that accounted for almost 8 percent of its total workforce.
Chief Executive Officer John Thain turned to Bank of America CEO Kenneth Lewis for help the same time that Lehman Brothers was being forced into bankruptcy. The credit markets remain frozen and the finance world shatters by the loss of liquidity and a lending capacity of $10 trillion.
Banks and other financial institutions have been so far the top choices for graduates as the best, most challenging and well-paid places to work for. However, things have changed radically for the finance industry because of the growing number of failed financial institutions and the insolvency of most of them.
130,000 finance jobs have been eliminated since June 2007, from London to New York. New hires have been kept to a minimum and next year budgets have been sliced down to fit the new bill. Merrill Lynch and Co. has committed to a new challenge: saving $7 billion across the firm.
The ex-investment bank accumulated toxic products resulted in $52.2 billion in writedowns and losses just before the Bank of America takeover deal announced on the October, 16.