Bank Of America Essay
Hieu Huynh
SIB 429
Prof. I. Kim Wang
Mini Case: Bank Of America
Challenges:
Where is the bank heading?
What can BoA do in the future to prevent such exposure to economic meltdowns?
What will the financial landscape look like as the US economy continue to recover?
Where will the bank’s opportunities lie in the new economy?
How should the bank position itself strategically to compete successfully and grow in the future?
Firm History, Supplier/Buyers, Competitors: BoA’s achievements and growth throughout the past was from successful merger and acquisition which start with two separate banking entities, Commercial National Bank and Bank of Italy in 1874. Commercial National Bank grew in value and expanded from repurchased and acquisition …show more content…
Therefore, a wrong direction in the management can lead to an increase in debt as well as cause the U.S economy to struggle. Right now, BoA needs to fully recover their financial position as of before the recession hit in other to compete against their major competitors who already pay-off their TARP funds such as JPMorgan Chase. BoA also need to realize the effectiveness of continue to merge and acquire other banks or institutions as well as expand to another locations since their financial recovery is at a slow pace. Finally, the best lesson for BoA is to learn from their failure. They must not overestimate asset values on their balance sheet; such as “Real Estate always goes up” expression before the recession hit. They should not give loan to unaffordable households anymore. They must have a better system to keep track of the loans since the whole 2007 crises was caused by a failing system in lending out money to individual who couldn’t pay back because they have no job or wasn’t even qualify to get the loans from the banks or other institutions. Finally, they need to realize the importance of shareholders since they have caused shareholders to lose trust in the
SIB 429
Prof. I. Kim Wang
Mini Case: Bank Of America
Challenges:
Where is the bank heading?
What can BoA do in the future to prevent such exposure to economic meltdowns?
What will the financial landscape look like as the US economy continue to recover?
Where will the bank’s opportunities lie in the new economy?
How should the bank position itself strategically to compete successfully and grow in the future?
Firm History, Supplier/Buyers, Competitors: BoA’s achievements and growth throughout the past was from successful merger and acquisition which start with two separate banking entities, Commercial National Bank and Bank of Italy in 1874. Commercial National Bank grew in value and expanded from repurchased and acquisition …show more content…
Therefore, a wrong direction in the management can lead to an increase in debt as well as cause the U.S economy to struggle. Right now, BoA needs to fully recover their financial position as of before the recession hit in other to compete against their major competitors who already pay-off their TARP funds such as JPMorgan Chase. BoA also need to realize the effectiveness of continue to merge and acquire other banks or institutions as well as expand to another locations since their financial recovery is at a slow pace. Finally, the best lesson for BoA is to learn from their failure. They must not overestimate asset values on their balance sheet; such as “Real Estate always goes up” expression before the recession hit. They should not give loan to unaffordable households anymore. They must have a better system to keep track of the loans since the whole 2007 crises was caused by a failing system in lending out money to individual who couldn’t pay back because they have no job or wasn’t even qualify to get the loans from the banks or other institutions. Finally, they need to realize the importance of shareholders since they have caused shareholders to lose trust in the