We are shocked; Casablanca-shocked. Bloomberg/BusinessWeek reports that Bank of America Corp. Chief Executive Officer Brian T. Moynihan said that slow economic growth and new regulations mean that the “new normal” in retail banking won’t be as profitable as before.
The second-biggest U.S. lender by deposits is cutting costs and seeking to sell more services to clients to adjust, Moynihan said today at an investor conference in New York. The Charlotte, North Carolina-based company loses money doing business with many households at its consumer-banking operation, he said.
“It’s going to be a smaller platform, it won’t be quite the same as it was at Bank of America and around the industry,” Moynihan, 52, said at the conference. “We have 42 million retail customers, many of those don’t contribute or overcome their cost-to-serve…..”
Find out more at http://www.businessweek.com/news/2011-11-15/bofa-s-moynihan-says-new-normal-in-banking-not-as-profitable.html
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