Bank of America (BAC) is exiting the international credit card business, selling its $8.6B...


Bank of America (BAC) is exiting the international credit card business, selling its $8.6B Canadian portfolio to TD Bank (TD) and planning sales of its U.K. and Irish holdings. A cynic might attribute the move to a troubled lender unloading assets on the cheap to raise liquidity. Nevertheless, shares +3.3% premarket.

From other sites
Comments (3)
  • The Enterprising Value Inve...
    , contributor
    Comments (572) | Send Message
     
    haha liquidity is obviously not the problems for these institutions right now.

     

    BAC has over $100B in tier 1 common similar to all other banks on the street. The issue for them is that their balance sheet is more heavily weighted towards Risk Weighted Assets that drive down their capital ratios. Selling their highest RWA to buy into lower RWA businesses without altering capital will raise BAC's capital ratios.
    15 Aug 2011, 08:04 AM Reply Like
  • lance92646
    , contributor
    Comments (7) | Send Message
     
    Or, a cynic might say:

     

    selling the international business so they can do a better job to serve us folks here, back home.
    15 Aug 2011, 10:11 AM Reply Like
  • stockdoggie
    , contributor
    Comments (23) | Send Message
     
    it is predicted that all holding companies are gonig to be smaller

     

    increased regulation at trading at vast discounts makes sense to sell assets that are non core

     

    going over well at plus 8%

     

    the down draft vastly overdone treading as though its heading for chapter 11

     

    wonder the value of the EU assets mentioned

     

    also dillution was a story with china construction bank...lowering the value of the bac stake so they might decide to slow down on that one--no insight into that one

     

    also the meeting with geitner was interesting/ i imagine they are wanting to get to the same status a jpm etc --out of the dog house
    15 Aug 2011, 02:51 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs