Will BofA succeed in emulating Goldman Sach's "lost decade" with their own "Q" initiative?
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Looks like all those billions of dollars spent on trying to migrate to a loser platform like Quartz has not only not only, not been successful but has contributed to huge losses! Could it be that having duplicate systems actually costs twice as much money when no real benefits are realized?
It's easy to read. Vocker is driving the downsizing. The number Moynihan and any banker watches is "Return on average allocated capital ". Less than 10% is abysmal -needs to be closer to 20%. Compare GWIM vs Global Markets on page 14 of their Q1 news release. Looks like they'll continue cutting risk-taking and staff to try to move that number.
If they fail - they may cut the business loose entirely. Expect more of the same.
http://www.fool.com/investing/general/2016/05/05/bank-of-america-is-blowing-up-the-merrill-lynch-fr.aspx
http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=quarterlyearnings
Bank of America is shaking up its equities business.
http://www.businessinsider.com/bank-of-america-is-shaking-up-a-huge-trading-business-heres-the-memo-2016-4
Seems as if the FED and FDIC not any happier than employees
https://www.federalreserve.gov/newsevents/press/bcreg/bank-of-america-letter-20160413.pdf
No insight there, same tired boring story. Responsible growth, translation barely growing, and that growth mostly through reducing headcount. People need to be confident, America needs to win. How confident are your employees BM when you repeatedly tell them they have a target on their back? How can American's win when you replace your American workers with anything but? Hope your kids are enjoying their outings to Paris and Moscow. Get a clue. Typical lawyer, constant talking out of both sides of his mouth.
Insight on growth strategy from BM:
https://charlierose.com/videos/23108
It seems just that simple. it is a boring business, with no growth prospects in any of the business units. Hunker down, cut staff to the bone, and run the bank off into the sunset as you skim your annual 20M off the top. He's a perfect CEO, persona reflects the company and its prospects. Yawn. Actually, replace him with that 15 year old. Kid probably has better ideas to grow this company than the overpaid clowns running this show.
The company is being run on the lines of how a 15 year old thinks:
http://finance.yahoo.com/news/15-old-grilled-bank-americas-210439684.html
Is it just that simple or is there a major piece of strategy missing ie growth?