Like JPMorgan and Wells Fargo, BofA took advantage of the fire sales going on at other financial institutions. They picked up the worst brand in the history of finance, Countrywide at a nice discount. Since the brand in tainted though, don’t expect the name to stick. They also picked up Merrill Lynch, briefly becoming the world’s largest broker (Morgan Stanley Smith Barney now holds that crown).
BofA has its work cut out for them, because integrating these two companies will take a long time. Combine that with some secret negotiations with the Treasury Department for aid, despite the fact they said they didn’t need any, and BofA has a brand issue on its hands. The only monster bank left in the south could pick up some Wachovia customers, but they’ll have to act quickly. Expect BofA, despite it’s mergers, to maintain its pre-credit crunch rank as #3 of the big ones.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
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