Probably not, no, Dealbreaker writes. The Wall Street Journal reports today that the Fed asked BofA what it would do, just hypothetically, if it got sued even more than it’s already been sued. You might expect “find forty more Warren Buffetts” but BofA has actually got a trickier trick up its sleeve:
Executives of the bank recently responded to the unusual request from the Federal Reserve with a list of options that includes the issuance of a separate class of shares tied to the performance of its Merrill Lynch securities unit, these people said. Bank of America purchased Merrill Lynch in 2009, and it has become the bank’s most profitable division.
Chief Executive Brian Moynihan isn’t expected to pull the trigger soon, if ever, on the creation of a so-called Merrill Lynch tracking stock. Such a move would raise money from investors but could be viewed as counter to Mr. Moynihan’s strategy of knitting together the disparate parts of the franchise into a cohesive whole. This seems like a pretty far-fetched, low-down-the-list option…..
Read more at http://dealbreaker.com/2011/09/has-brian-moynihan-also-had-all-the-fun-he-can-stand-in-investment-banking/
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