BAC: BANK OF AMERICA ANNOUNCES JOB CUTS

It has become big news that Bank of American is going to eliminate approximately 3,000 positions in investment banking due to poor third quarter results. There was a massive 32% decline in these third-quarter earnings as a result of loans and trading losses. In addition, the vice chairman of Bank of America, Gene Taylor, plans to retire at the the year's end after 38 years with the company. According to Bank of America and its key statistics, the net income $5.42 billion to $3.7 billion last year. Bank of America was especially affected by the disruption of the credit market in the global corporate and investment unit, where the net income from last year decreased from $1.43 billion to only $100 million this year, a 93% decline. the Revenue decreased 12%, lowering it to $16.3 billion. The chart for Bank of America shows a fairly steep negative slope, inferring the continual decline in price per share. Furthermore, the expected PEG ratio expected for the next 5 years is 1.53, which is not that great of a number at all. The total debt, $585.93 billion exceeds the total cash, $358.30 billion. In comparison to Bank of America's competitors, including the other major investment banks, it is doing very poorly at this point. Many professional analysts that were originally in favor of purchasing Bank of America shares have become neutral to the outcome of the future and more have agreed with its future underperformance. Therefore, Bank of America isn't an efficient investment mainly for short-term investors.