Page 26 - Bank of America E Teaching Note

These 2008 acquisitions of Countrywide Financial and
Merrill Lynch, served as the driving force behind Bank of

America's $200 billion plus bill to extract itself from the
financial crisis. (23)

Perhaps, however, the question that should be asked is

how much TARP finance did the BofA use to fund its fines

etc.?

Moynihan had laid out his stall based on organic growth

but even if BofA wanted to grow by acquisition, it

couldn't. Federal law prohibits a bank that holds 10% or

more of the nation's deposits, as Bank of America does,

from buying other banks.

“But even if it were cleared to make acquisitions,

Moynihan's strategy is the most prudent course for the

$2.2 trillion bank to pursue. The successful banks of the

future will spend their money not on buying other banks

but rather on technology and adapting to an evolving
customer base, stuffed with a new generation of

consumers with less need or appreciation for bank
branches. In short, as Moynihan knows better than

anyone, Bank of America's acquisitive strategy of yore is

outdated.” (24)