Another big bank is trimming its workforce this year as the trend in the banking industry grows, reports Reuters.
“Bank of Montreal (BMO) is winding down its indirect retail auto finance business and shifting focus to other areas in a move that will result in an unspecified number of job losses,” Canada’s third-largest bank said Saturday.
“The move comes after BMO’s overall bad debt provisions rose to C$492 million, compared with C$136 million a year earlier, for the quarter ended July 31 in a sign of growing stress consumers face from a rapid rise in borrowing costs,” said Reuters.
“By winding down the indirect retail auto finance business, we have the ability to focus our resources on areas where we believe our competitive positioning is strongest,” BMO said.
The bank is working closely with employees who will be affected by job cuts to provide support, it said.
But BMO isn’t the only big bank trimming its workforce this year.
Last week, Citigroup’s CEO announced its new round of job cuts for the remainder of the year.
The bank confirmed during the second quarter layoffs (1,600 in the second quarter) will push the total job cuts to 5,000 this year.
“CEO Jane Fraser announced a major management reorganization on Wednesday that will result in more job cuts and give her more direct oversight over its businesses as she seeks to simplify the bank’s structure.
The heads of the bank’s five businesses will now report directly to Fraser. They include: Shahmir Khaliq, who runs services, Andrew Morton in markets, Peter Babej for investment and corporate banking on an interim basis, Gonzalo Luchetti in U.S. consumer banking, and Andy Sieg in wealth when he joins the company later this month,” per Reuters.
Other Bank News Today
A Citibank customer is now facing a painful $120K loss after the bank froze her deposit and threatened to close her account.
A woman in Arizona says her life savings of $120,000 has disappeared from her bank account after transferring her money from a regional California bank called Farmers & Merchants, reports the CBS-affiliated news station KPHO.
Lomax says her Citibank account initially showed the money had arrived, but soon after her debit card was declined.
“[The money] was actually right there on the screen. And then poof! It just disappeared.”
Citibank then sent Lomax a notice in the mail saying she breached the bank’s terms of agreement, the money had been sent back to its “rightful owner,” and her account would be terminated in 60 days.
Lomax then contacted Farmers & Merchants, who told her the money is gone, reports DH.
“I’m at my wit’s end. I don’t know what to do anymore. I’m climbing the walls. There are nights that I’ll go through half a box of Kleenex crying…
My biggest fear is that they sent it somewhere and somebody else got it, and they are saying ‘Christmas came early this year!’
I’d like my money back. I’d like to buy a home so I can live my last 20-30 years comfortably.”
Despite the termination notice from Citibank, both banks say they are now investigating the matter.
“Reports of banking customers dealing with abrupt account closures due to concerns of suspicious behavior have ramped up in recent years.
The number of Suspicious Activity Reports (SARs) submitted by banks to law enforcement was about 830,000 in 2014.
That number has steadily increased, with about 1.4 million SARs reported in 2021.
However, according to the Banking Policy Institute, just 4% of SARs submitted by banks to law enforcement result in a follow-up, and a small fraction of the follow-ups result in arrests and convictions,” reports DH.
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