Bank of America Corp (NYSE: BAC) plans on taking a move out of Citigroup, Inc (NYSE: C)’s playbook by highlighting billions of dollars’ worth of assets that it intends to either sell or wind down operations on.
The Charlotte-based bank told investors and analyst alike that it’s considering disclosures on a number of assets including loans, businesses and stakes that it considers non-core. The Financial Times first reported that the non-core assets could be worth more than $100 billion. Bank of America currently has a balance sheet totaling more than $2.3 trillion, but disclosing the assets it hopes to sell could lead to the bank taking aggressive steps to reduce its balance sheets.
“BofA would do itself and investors a great service if it gave greater clarity and details on the size and composition of its non-core assets,” said Morgan Stanley (NYSE: MS) analyst Betsy Graseck, who recently met with Bank of America Corp (NYSE: BAC) management.
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Banking, Global Markets, Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other. On January 1, 2009, the Company completed the acquisition of Merrill Lynch.
Shares of Bank of America Corp (NYSE: BAC) traded down 1.08% during mid-day trading on Monday, hitting $13.80.
