Bank of America to redeploy wealth management, banking employees

(Reuters) – Bank of America Corp (NYSE:) is redeploying employees in wealth management and lending to other roles within the company, a source familiar with the matter said on Friday, as higher interest rates continue to weigh on the businesses.

Less than 200 employees are being moved to product specialist positions within the company’s global operations organization, the source told Reuters.

“As our business and client needs grow and evolve, our focus continues to be on aligning our team to areas of greatest need. Based on current market conditions, we are re-aligning talent to support these areas,” a Bank of America spokesperson said.

The news was first reported by Bloomberg on Friday.

The move highlights the broader weakness in Wall Street banks’ mortgage and wealth management businesses in a rising interest rate environment.

Interest rate hikes by global central banks to tame elevated levels of inflation have weighed on consumer and corporate spending, affecting the outlook for Wall Street heavyweights such as Goldman Sachs Group Inc (NYSE:) and Morgan Stanley (NYSE:).

Wells Fargo (NYSE:) & Co slashed hundreds of jobs in its mortgage business across the U.S., Bloomberg News reported in December.