Bank of America Corp is lagging behind its major U.S. competitors in complying with new capital rules, leading the bank to consider even more asset sales, sources said and the bank's management is focused on not being an outlier compared to its peers and believes it has "viable alternatives" to increase its capital levels, a person familiar with the situation told Reuters.
The bank, for example, could consider selling its Indian back-office processsing operation, as other banks have sources said, to the bank has also said it is looking to shed real estate holdings and private-equity investments after about $50 billion of asset sales since January in 2010 include sales such as most of its shares in China Construction Bank Corp and the bank may not have many big-ticket items left.
Bank of America's shares are down 58 percent this year and closed below $5 on Monday for the first time since March 2009 in comparison in the KBW Bank Index is down 23.5 percent this year of bank's shares on Friday closed at $5.60, up 2.4 percent amid a broader rally in the stock market and the analysts say the bank may have to take more dramatic steps, which could range from shaking up its management to breaking up the company.
NEW CAPITAL RULES for the Moynihan will be under pressure to show that Bank of America is up to the challenge of meeting proposed new capital rules and improving returns for shareholders and the banks have until 2019 to fully meet international capital rules in requirements stepping up between now and then most of the biggest U.S banks expect to meet the 2019 rules much sooner.
The bank, for example, could consider selling its Indian back-office processsing operation, as other banks have sources said, to the bank has also said it is looking to shed real estate holdings and private-equity investments after about $50 billion of asset sales since January in 2010 include sales such as most of its shares in China Construction Bank Corp and the bank may not have many big-ticket items left.
Bank of America's shares are down 58 percent this year and closed below $5 on Monday for the first time since March 2009 in comparison in the KBW Bank Index is down 23.5 percent this year of bank's shares on Friday closed at $5.60, up 2.4 percent amid a broader rally in the stock market and the analysts say the bank may have to take more dramatic steps, which could range from shaking up its management to breaking up the company.
NEW CAPITAL RULES for the Moynihan will be under pressure to show that Bank of America is up to the challenge of meeting proposed new capital rules and improving returns for shareholders and the banks have until 2019 to fully meet international capital rules in requirements stepping up between now and then most of the biggest U.S banks expect to meet the 2019 rules much sooner.
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