The Banking and Strategy Initiative

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Bank of America asset sales continue

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BofA continues its asset sales with sales from its associate Credit card portfolios run uder the name of FIA Card services. While one sale was made to Regions Financial in June for cards run as Regions Financial issue for $1 bln, another was ade this week with $700 mln for a sale of a unit of FIA to US Bancorp The unit will continue selling these cards on the ground as FIA, in the name of Edward Jones and 28 such Financial institutions for these card franchises. That still leaves the bank with its own $100 bln card portfolio in the USA

Regions adopted this logo after merging with U...

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JP Morgan is also trying to grow its card outstandings from $100 bln to $128 bln. BofA also paud $335 mln in fines for a swettlement of suits against Countrywide for racial discrimination to Blacks and Hispanics in issuing loans

The Banks’ Q4 estimates will show a potential loss of $3.3 bln from ban on overdraft charges in the new regulations, a hurrah for CFPRA (according to research published Monday by Credit Suisse analyst Moshe Orenbuch.) even as the bank will earn upwards of $2 bln from credit and debit cards fees and account charges this year.

US Bancorp is also listed as having lost $460 mln in the overdraft charges disallowed, $1.4 bln lost at Wells Fargo and $1 bln+ at JP Morgan. Bank of America had only $16 bln in European sovereign defaults exposure as of December and expects US growth to be more than 2% in 2012. “Employment won’t improve a lot” said Moynihan at a recent Charlotte conference where he was ribbed by a felllow CEO for the $5 fees it wanted to charge earlier in August 2011

 

 

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This entry was posted on December 22, 2011 by in Banking, US and tagged , , , , , , , .

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