Bank of America to cut $5 billion in annual expenses

Bank of America to cut $5 billion in annual expenses: (By Rick Rothacker, rrothacker@charlotteobserver.com) Bank of America Corp. plans to slash $5 billion in annual expenses in the first phase of its ongoing cost-cutting initiative, chief executive Brian Moynihan told investors this morning.

The reduction amounts to 18 percent of the $27 billion in expenses the Charlotte bank tallied for consumer banking, credit card, home loans, technology and operations and other support functions in the year that ended March 31. The cost savings will be fully achieved by the end of 2013, Moynihan said at an investor conference in New York.