Bank of America to Cut Many Asian Investment Banking Jobs

The Bank of America had announced its plans to cut about two dozen investment banking jobs in Asia. Some affected include top dealmakers in the region.

The job cut will coincide with the Goldman Sachs abandonment of several investment banking branches in Southeast Asia that amounts to 30% of its regional business.

Bankers handling coverage and deals would be made redundant this week.

The banks are facing pressure from investors as Hong Kong and other financial hubs are overtaken by Chinese Mainland banks, sweeping away the competition.

The banks have suffered consecutive losses in the last few quarters.

Meanwhile, Bank of America would post information of higher third quarter revenues in its investment banking business.

In July, Chief Executive Officer Brian Moynihan announced a new expense target of $53 billion for 2018, $3.3 billion less than its total expenses over the past four quarters.

The new target came after years of working through a sweeping cost-cutting project dubbed “New BAC” and an ongoing efficiency initiative called “Simplify and Improve.”

Besides Bank of America and Goldman, many western banks have announced plans to scale down their operations in Asia in the past year, as they grapple with slowing revenue growth and higher operating costs in the region.

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