Bank of America Corp., the second-biggest U.S. lender, eliminated some managers from a unit catering to wealthy families as it cuts costs, said two people with knowledge of the move.
Executives who oversaw trust officers and private-client advisers at the firm’s U.S. Trust unit were dismissed this month amid a companywide review of expenses at the Charlotte, N.C.-based bank, said the people, who requested anonymity. They declined to say how many of approximately 40 managers were affected.
Bank of America CEO Brian T. Moynihan is trying to lower expenses without reducing the productivity of wealth managers. He has said he’ll reveal next month how his efficiency effort may trim as much as $3 billion in annual expenses.
“Firms are tightening their belts and their mentality is that as long as it’s not client-facing, they’re OK to go,” said Mindy Diamond, president of Diamond Consultants LLC, a Chester, N.J.-based executive-search firm. •