Bank of America Considering Plan to Sell Non-Core Assets

Bank of AmericaBank of America (BAC) is planning to highlight billions of dollars worth of assets that it intends to sell or wind down.

The bank has told investors and analysts that it is considering disclosures on assets including loans, businesses and stakes that it considers non-core, The Financial Times reported without naming its sources. The non-core assets could be worth more than $100 billion.

Disclosing these assets could lead to the bank taking aggressive steps to reduce its balance sheet, which is worth more than $2,300 billion.

"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 Betsy Graseck, a Morgan Stanley analyst who recently met with Bank of America management.

The non-core assets could include structured-credit products and impaired loans that Bank of America acquired when it bought mortgage lender Countrywide Financial.

Bank of America declined to comment to The Financial Times.

Bank of America has already sold some assets, including shares in MasterCard, Spain's Grupo Financiero Santander and Brazil's Itau Unibanco. These sales earned the bank $10 billion in gross proceeds at the end of the second quarter.

Increase your money and finance knowledge from home

Investing in Startups

The lucrative and risky world of startups.

View Course »

What is Short Selling?

Make a profit when stocks prices fall.

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:

that nice BOA going to sell of non core assest and how did they get them by lie to the govt they need money from the people tax money so they and loan again and lie ! now they going to sell of assest and make more profit off the money that was not there or work for but the people who live here and work here off are tax we pay for and gave to them !!!!!!!!!! and we had no say in it that why 3% have all the money here get free money and make more money and dont ever have to work for it !!!!!!!

September 14 2010 at 9:13 AM Report abuse -2 rate up rate down Reply