The Fall of Investment Banking: Bank of America to Lay Off 200 Bankers
This year will not be better than 2022 due to economic uncertainty and the rise in interest rates.
The truth is that we come from a few years with a lot of activity in M&A, to understand each other, buying and selling of companies, because the prices were very affordable, especially in some sectors. That situation, however, has radically changed in such a way that in 2022 the results of the large investment banks fell significantly and some, such as Goldman Sachs (more than 3,000) and Morgan Stanley (around 1,500), undertook major adjustments. of personal.
The prospects for this year are no better, with persistent economic uncertainty, rising interest rates and, above all, with companies whose valuations have rebounded after Covid. Nobody wants to risk paying current prices, without being clear about what will happen on the planet in the coming months.
For this reason, Bank of America, which had not initiated layoffs, although it had frozen the hiring of personnel, is preparing the departure of at least 200 investment bankers throughout the group, according to Bloomberg. The entity closed 2022 with a 14% drop in profit due to provisions -more than 1,000 million dollars- to cover future defaults. Revenues increased by 6.5%.
