In a filing with the Securities and Exchange Commission, the second-largest US bank by assets revealed its plan to reduce its divisions to five from six, and to form one consumer-banking division by integrating its credit-card operations into its retail and small-business banking business.
The company will also integrate the middle-market and large corporate lending to create a larger business-banking division, which will now include trading and underwriting securities and investment banking.
The bank added that the Bank of America’s Merrill Lynch wealth-management division and mortgage-banking division will remain unaffected by the changes.
Under the cost cutting program ‘Project New BAC’, Bank of America carried out management changes and new organizational structure and also axed 30,000 jobs and reduced expenses by $5bn.
The bank said it has already initiated a new program which will save nearly $3bn.
Joe Price, previously president of consumer and small-business banking, and Sallie Krawcheck, previously president of wealth management, left the company when the new management structure was enforced, while Barbara Desoer, president of the mortgages unit, left in the beginning of this year.
