Bank of America May Abandon Certain U.S. Markets

What's Next In Payments®
1:20 PM EDT January 14th, 2012

Last fall, Bank of America announced 30,000 job cuts amid continued economic instability. Now, the Wall Street Journal reports the FI is considering widespread branch closures and even retreating all together from certain regions around the country should the financial crisis worsen. Such action by BoA would result in another round of extensive job cuts.

“We are a less risky, smaller, better capitalized, and more streamlined company since Brian [Moynihan] became CEO,” a BofA spokesman said, according to CompliancEX. “The progress we have made has not been done without challenges and setbacks, but…we believe will deliver long-term value for shareholders.”

(Related: 2 More Big Banks Make Widespread Job Cuts)

BoA, Wells Fargo and J.P. Morgan Chase are the only banks with branches spanning coast-to-coast. But BoA’s share price plummeted 55 percent last year, and J.P. Morgan surpassed the FI as the nation’s largest bank by assets, reports CompliancEX. The spokesman noted that BoA had dumped billions in noncore businesses and assets.

BofA has already implied that it will close 750 of its 5,700 branches over the next few years, reports CompliancEX. The news site points out that approximately $60 billion of BofA’s estimated $1 trillion in deposits come from 310 geographic areas that have populations of under 500,000.

(Related: U.S. Bank and American Express Partner on $74 Million Economic Growth Investment to Create Jobs)


Also by This Author
What's Hot
Merchant Innovation
Is Apple Pay The (Real) Blackberry Killer?
Loyalty & Rewards
Amex’s Parting Gift to Canadian Costco Customers
StartUp Finds Gold In Online Transaction Data
Alternative Financial Services
New Online to Offline Use Case: App-Based Rent Payments
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
B2B Payments
ISO 20022: Worth the risk?
A New Way To Hire Contractors?
B2B Payments
ISO 20022: Worth the risk?
B2B Payments
Commercial Card Competition Heats Up
View All Articles ››