Bank of America Could Sell Branches
It’s no secret that B of A is troubled, largely due to its mortgage lending division.
The bank bought Countrywide Home Loans in 2008, and has since been burdened with Countrywide’s bad loans, foreclosures, and litigation tied to soured mortgage-backed securities.
The Federal Reserve Board (Fed) has put the bank on notice that it needs to raise additional capital (money!).
Now, in a proposal to the Fed, B of A has said that it could sell branches around the country in an emergency.
B of A has about 5,700 branches and already has announced plans to shutter about 750 locations as part of a cost-cutting initiative.
B of A got a bailout from the federal government in the aftermath of the 2008 financial crisis, but remains weakened.
B of A’s stock closed at $6.61 Friday and is down 87% over the past five years (click on the 5-year chart in the CNNMoney.com stock quote link).
Am I the only one who thinks B of A is likely to get another bailout?
Source: Reuters.com article
January 14th, 2012 Posted in Inside Real Estate
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