Sunday, April 11, 2010

Break Up Bank of America (NYSE:BAC) Says Dick Bove

Break up Bank of America

Rochdale Securities analyst Dick Bove says Bank of America (NYSE:BAC) should follow the example of Citigroup (NYSE:C) and break itself up, saying the model used by the giant banks no longer workds.

Bove isn't just thinking of minor surgery either for Bank of America, he's talking major cuts to the point of getting rid of Merrill Lynch, managing investments, the mortgage and credit card business.

What Bove sees as the perfect situation for them would be to have a company that takes in deposits and then lends money out. Now that would be a radical concept wouldn't it.

1 comment:

thomas said...

Dick Bove says "a company that takes in deposits and then lends money out. Now that would be a radical concept wouldn't it.?"

Sounds like WaMu's business plan. what a concept that was, lack of diversification in the banking world is a sure fire way to fail!