BofA employees flood bank's rivals with resumes

Wed Nov 2, 2011 11:12am EDT
 
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By Rick Rothacker

CHARLOTTE, North Carolina (Reuters) - Bank of America Corp employees are flooding rival companies with resumes as a major cost-cutting program gets under way at the second-largest U.S. bank.

Competitors say they are getting an influx of calls, emails and LinkedIn connection requests as the bank embarks on a plan to slash 30,000 jobs over the next few years. The employees are scouting jobs in retail, commercial and investment banking, bankers and recruiters said.

"It's definitely picking up," said a senior executive at a rival consumer bank.

The uncertainty at Bank of America gives competitors a chance to nab talented employees, bankers said. But they cautioned that many companies are only hiring selectively.

In the most high-profile departure, PNC Financial Services Group Inc last week hired Bank of America strategy executive Mike Lyons to lead its corporate and institutional banking unit. Lyons had advised CEO Brian Moynihan on his plan to sell off nonessential assets.

John Dunn, director of the banking and financial services practice at recruiting firm Stephen James Associates, said he has had about 20 calls or meetings with Bank of America employees in recent weeks, mostly in investment banking and capital markets operations. Normally, he might have talked to or met only two to four over that period.

"Now these folks are looking to get out of choppy water before they get displaced or asked to relocate," Dunn said. "It's much easier finding a job while you have a job."

Moynihan is chopping expenses as new regulations, a sluggish economy and low long-term interest rates are crimping profits across the banking industry. Charlotte, North Carolina-based Bank of America in particular needs to build capital to cover mortgage-related losses and meet new international standards.   Continued...