Ignore the billions in one-time revenue Bank of America booked in Q2. Like the rest of the banking industry BAC is trying to make its way in deflationary, deleveraging environment after decades of fake credit and hot checks.
Even assume the bank succeeds at cleaning up previous excesses, actual new lending activity remains in the toilet. If this origination rate is the new normal then costs become the target. What is the largest cost center of any bank?
Jobs.
We’ll know much more after Q3, but I certainly would not expect BAC to add jobs in this environment. Should things continue to scrape along, something will have to give.
