Publication: Reuters Published Date: 1/13/2012
Bank of America Corp told Federal Reserve officials in June that it could shed branches in some parts of the country if it needed to raise capital in an emergency, a person familiar with the matter said.
The proposal was part of a series of options provided to the Fed, including issuing a tracking stock for its Merrill Lynch operations. The fact that the bank proposed selling branches doesn't mean it's a desirable move or highly probable, the person said.
Bank of America Chief Executive Officer Brian Moynihan has been under pressure to raise capital to absorb mortgage-related losses and meet new international standards. The second largest U.S. bank received government bailouts during the financial crisis and emerged as one of weaker institutions in its aftermath. Since June, Moynihan has taken a number of steps to boost capital levels, including selling nearly $15 billion in China Construction Bank Corp shares and swapping preferred shares for common stock. The bank has said a measure of capital against risk-weighted assets improved to at least 9.25 percent at the end of December, up from 8.65 percent at the end of September. View entire article.