The second largest U.S. bank is cutting bankers and loan processors in commercial banking offices scattered around the country, sources said. Bank of America hasn't disclosed the number of cuts, but one of the people said it was a small percentage of the total unit.
In the meantime, The Financial Times reports that influential Barclays shareholders are calling for the appointment of an external Chairman to repair the bank's reputation.
Three of Barclays' top 10 investors told the FT that it would be unacceptable for the Chairman to be an internal appointment.
Another top shareholder suggested that both CEO and Chairman appointments should come from outside the banking industry.
Finally, Bloomberg reports that The Federal Reserve Bank of New York was aware of potential issues involving Barclays and the London interbank offered rate after the financial crisis began in 2007, according to a statement from the district bank.
'In the context of our market monitoring following the onset of the financial crisis in late 2007, involving thousands of calls and e-mails with market participants over a period of many months, we received occasional anecdotal reports from Barclays of problems with Libor', New York Fed spokeswoman Andrea Priest said in an e-mailed statement.
'In the spring of 2008, following the failure of Bear Stearns and shortly before the first media report on the subject, we made further inquiry of Barclays as to how Libor submissions were being conducted', the statement said. 'We subsequently shared our analysis and suggestions for reform of Libor with the relevant authorities in the U.K'.
Hit the link below to access the complete Bloomberg article:
The Alchemists: Three Central Bankers and a World on Fire
Hubris: How HBOS Wrecked the Best Bank in Britain
