Bank of America May Abandon Certain U.S. Markets
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.”
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.