Is Bank of America on Life Support?
This is a thestreet.com article.
By Roger Arnold
If the current economic trajectory for global recession holds, and I think it will, one of the victims is going to be Bank of America (BAC). And it probably won’t survive.
This is not because of any changes with respect to the company’s business strategy. It’s because no changes have been made.
Since the Lehman-era crisis, Bank of America has been dealing with legacy issues, buying loan business by offering much lower interest rates to institutional borrowers on commercial and industrial (C&I) loans than the other money centers, and reducing costs by firing people.
That’s not a business strategy, though. That’s just hunkering down and trying to outwait the economy and business environment with the expectation of “this too will pass.”
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