BofA shakes up investment unit

After a poor showing last week, the bank will reshuffle managers and cut jobs in its Global Corporate and Investment Banking unit.

October 25 2007: 8:44 AM EDT

NEW YORK (CNNMoney.com) -- Bank of America announced Wednesday that it will restructure its investment banking unit, starting with that unit's president.

The bank said that Gene Taylor, president of the bank's Global Corporate and Investment Banking unit, will retire and be replaced by Brian Moynihan, current head of the bank's Global Wealth and Investment Management unit.

The bank also said it will eliminate about 3,000 jobs, most of which will be in the Global Corporate and Investment Banking unit, but other units will also be affected by the layoffs.

The changes come after losses in the unit's account totaled more than $1.45 billion, triggering a 32% decline in net income for the bank, compared with the same quarter a year earlier.

"While some of these changes are a direct result of our underperformance, others have been contemplated for a number of months as we looked at how we could operate more effectively," Bank of America's (Charts, Fortune 500) CEO Kenneth Lewis said in a prepared statement.

"We recognize that there are areas where we need to improve and are moving decisively toward that goal," Lewis added.

Bank of America's earnings fall 32%