BofA decline
Anyone else feel like this bank is a sinking ship? So many bloated associate classes with no where to go and internal mobility no longer supported. Doesnt seem like similar sentiment at Wells, GS, MS. Why is this happening?
Based on previous WSO threads, here are some insights:
For more detailed discussions and personal experiences, you might want to explore specific threads on Wall Street Oasis.
Sources: Why do banks hire MBA Associates?, Is Wells Fargo poised to become the next BB?, Wells Fargo bonuses down by 30%?!, Is Wells Fargo poised to become the next BB?, Wells Fargo IBD potential layoffs?
See “BofA IB revenue falloff” that sums it up well
The ship has already sunk thanks to the EGRC team.
I get that they’re not the strongest but are they actually responsible for BofA’s decline?…
It’s a very big reason why.
There are more MDs in that group than all of the industry coverage teams combined —-> this drastically lowers revenue per head, and therefore reduces pay across all groups and levels.
Because of the above, the top performers at the bank get fed up with subsidizing and leave. Mix this with the fact that BofA doesn’t fire underperformers, and you have a recipe for disaster from a talent retention standpoint.
A lot of valuable senior bankers in the bank’s historically strong groups (FSG, LF, C&R) have left over the past few years due to the above, further compounding the problem.
They have a lot of leeches for sure but even if the bank vanished that entire group tomorrow bank of america would still be in trouble. If you assume the middle market group brings in zero fees, the banking results are still shrinking and the talent across groups is still largely poor.
I would bet that if BofA cut the entirety of EGRC tomorrow, revenue per head would be on par with peers like GS/JPM/MS. We’re talking removing 50% of MDs/Ds who generate nothing and cost a fuck ton.
Thanks for the valuable insight Associate 2 at Wells Fargo!
😂😂😂😂😂 had to add Wells in there as if they are relevant. Might as well add William Blair
Prolly because they keep killing people
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