Bank of America layoffs … so this is right?
You may or may not have heard, but Bank of America recently eliminated 30,000 jobs throughout its system.
That’s 30,000 jobs, the largest elimination of jobs this year by any employer, and actually one of the largest in history.
Sears and Roebuck laid off 50,000 back in 1993. IBM fired 60,000 that same year.
General Motors canned 47,000 workers in 2009, but many of them have been called back. The GM layoffs were part of a restructuring program.
The Bank of America action though, that’s kinda special.
Just so you know ...
The bank management team say the 30,000 job cuts were necessary to keep the company’s head above water.
It’s been tough for the Bank of America of recent.
They’ve been struggling.
Just to stay up and running, they asked for and received a $20 billion bailout from the federal government as part of the TARP program (Troubled Asset Relief Program.) This was in January of 2009.
Then, the bank was handed $118 billion in guarantees to cover possible losses.
This all was distributed to the Bank of America following an earlier $25 billion given them in late 2008.
They also got a chunk of change — to the tune of $5.2 billion — that was filtered to them through AIG.
In short, the Bank of America got lots, and Lots, and LOTS of money from the federal government to help them survive and keep functioning as a major banking institution.
They were really going through a tough stretch back then, and still are now as demonstrated by the need to eliminate 30,000 jobs.
And yet, even as the bank wipes out 30,000 jobs, they still manage to find the money to pay off incredible bonuses to the same geniuses who created the mess in the first place.
Over $4 billion last year alone.
FOUR BILLION DOLLARS.
Bank of America’s payment of bonuses to those “entitled’ to such a perk averages out to $400,000 each. Some, of course, are paid less in bonuses, and some are paid much, much more. The $400,000 average figure was come to by taking the $4.4 billion total the Bank of America has set aside for bonuses and dividing it by the number of employees who will be benefiting.
Now keep in mind, this is a company that received in the area of $170 billion in cash and guarantees from the federal government to help them stay afloat.
Look, 30,000 jobs are being eliminated in a company in which the CEO, Brian Moynihan, is picking up a $9 million bonus this year.
A $9 million bonus for a guy overseeing the elimination of 30,000 jobs.
But, truth be known, Moynihan’s bonus is a pittance compared to the $14.3 million Tom Montag, head of the bank’s trading and market division, will receive.
Two more top Bank of America officers, Joe Price and Chuck Noski will take home $4.8 million in bonuses each.
Add it up. Four top dogs in Bank of America take home $32.9 million in bonuses.
All the while, they are eliminating 30,000 jobs. That’s $1,096 per employee now on the streets looking for a job.
What’s even goofier is that if Bank of America had not paid out $4.4 billion in bonuses, but rather retained the 30,000 employees in jobs they held, each of those employees could have been paid $146,666 in salary. (A smidge more than what I, or most of us earn.)
Have these people no shame?
Is this really “The American Dream”? Where four guy take home $32.9 million dollars in bonuses while creating a market situation in which 30,000 of their own “family” of employees hit the bricks?
At the same time, by the way, top executives at the Bank of America will receive raises for the good work they do — like eliminating 30,000 jobs.
Three of them, Noski, Price, and Montag will receive 6 percent pay hikes — a $50,000 bump.
The bank’s board of directors approved the bonuses and salary increases noting “... a unique and critical transition year for the company.”
And then, 30,000 jobs were eliminated.
Quite a transition, whatever that may mean.
But it gets even “better.”
The guy running Bank of America as it was being bailed out by the federal government to the tune of some $170 billion retired before Moynihan took over at the helm.
Ken Lewis walked away from his job as Bank of America CEO with a stocks and benefits package weighing in at a hefty $83 million dollars.
Lewis “earned” retirement compensation of $4.2 million — for running his company into the ground.
Everyone got all excited when it was announced he would only be making $32,000 in 2009 — to cover expenses.
Wow! What a good person. Taking one for the team in time of crisis.
But folks forget he collected $9 million in 2008 — just in salary. Not including perks.
So, let’s summarize.
30,000 jobs are wiped out.
Four or five guys make out like bandits.
These people really have no shame at all. None.
And shame on the government as well for letting such corporate paupers, (as indicated by the loans needed just to keep the doors open), rape and pillage the system while seeing another 30,000 people left jobless in an economy that will probably never be able to absorb or support them.