Page 35 - Bank of America E Teaching Note

Summary

Summary

“Can the government really claim victory for squeezing

money out of large banks like Bank of America to pay for

the sins of some other lender?” said Cecala, the publisher

of Inside Mortgage Finance. “Wouldn’t it be more

appropriate if they went after Countrywide officials who

were responsible for this kind of thing?” (6)

Although the threat of regulatory sanctions continues to

hang over all financial institutions, it could however, be

argued that regulatory scrutiny so long on BofA has now

moved on to Wells Fargo as a favoured target.

Rules intended to avert future bank failures have instead

helped big banks see off competition from smaller ones.

Like multinationals big banks can spread compliance

costs over a larger base. Furthermore, these large banks
which face and must adhere to a wide variety of capital

standards, have the advantage that they have lots of
businesses, and can thus arrange their affairs more

efficiently. Essential, when trying to achieve the twin aims

of improving operational efficiency and avoiding disaster.