Page 27 - Bank of America E Case Study

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