Page 199 - Bank Case Studies

In March 2017, Chairman and

CEO Brian Moynihan (2010),

sent a letter to BofA

shareholders making clear

that the old BofA business

model of growth for growth’s

sake was now a thing of the

past. Since 2008, BofA's
business model and strategic

priorities had completely
changed.

Moynihan had spent his seven

years in charge overseeing BofA's extraction from the 2008

crisis.

2011saw Moynihan introduce a proposed $5 monthly fee

for debit card users. It was a move too far. Resulting in

around 20% in unexpected account closures in the latter

quarter of the year. The decision was immediately reversed.

In late January 2012, Moynihan had stated:

“What we need to do is to continue to fine-tune

the company, give capital ratios where people

understood that we had the capital we knew we

had. And then they saw that and that’s why you

saw some response in the stock....The core issue

now is to drive the core earnings, and we’ve got to
get the costs down in the company, which we’re

working on. And then as the economy continues to
move along, even at the 2 percent growth level,