Economics Professor Says Bank Of America Cuts Won’t Be In Charlotte

Bank of America announced Thursday that 7,500 jobs will be cut after it completes its purchase of Countrywide Financial, but the bank won't say exactly where those cuts will happen.

Ron Madsen, a professor of economics at the University of North Carolina at Charlotte, said Charlotte workers likely won't be affected by the job reductions because Countrywide doesn't have a presence in the city.

He said the cuts will likely come from areas where both Countrywide and Bank of America have offices.

Madsen said in the long term, this acquisition will be good for the city of Charlotte and the bank.

“Because it will long term have a positive affect on the profitability of Bank of America, it's a really good thing for Charlotteans. It will make the bank more profitable. Bank of America shareholders are going to be happy long term,” he said.

Madsen said the housing market is expected to recover in the next two years, and when that happens the move will make Bank of America the top private mortgage lender in the country.

The purchase is expected to be finalized next Tuesday.