Shrinkage! BofA to Leave Parts of US If Financial Problems Worsen

Finally it has come to this! Bank of America, the second-largest U.S. bank by assets, has informed U.S. regulators that it is willing to draw back from some parts of the country if its financial problems worsen, the Wall Street Journal reported on Friday, people familiar with the situation told Reuters

Last year, BofA execs had put potential retreat on a list of emergency scenarios submitted to the Federal Reserve , the Journal said, citing sources.

BofA Chief Executive Brian Moynihan submitted a list to Fed officials in the middle of last year which listed the possible geographic cutback, the paper reported. The list also included a potential sale of a separate class of shares based on performance of Merrill Lynch, the securities firm owned by Bank of America, WSJ said, citing the sources….

Read more at http://www.cnbc.com/id/45983477