Bank of America May Pull Out of Some Areas
Bank tells Fed it'll shrink its footprint if things get rough
By Kevin Spak, Newser User
Posted Jan 13, 2012 10:18 AM CST
Customers line up at a Bank of America ATM in this file photo.   (AP Photo/Alan Diaz, File)

(Newser) – Should we start calling it Bank of Some of America? If push comes to shove, the banking giant is prepared to pull its operations out of some parts of the country, sources tell the Wall Street Journal. The unpalatable retreat is one of several contingency plans the bank drew up last year at the Federal Reserve's insistence, an exercise intended to prepare for the possibility that its mortgage and other financial problems could worsen.

Bank of America isn't eager to lose hard-won customers, and only intends to execute the pullback if absolutely necessary. But some analysts the Journal spoke to said the bank is bound to shrink its footprint at some point, because smaller cities are simply not as profitable as big ones. It has already announced plans to close 750 of its 5,700 branches in the coming years.

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Showing 3 of 6 comments
truefreedom
Jan 15, 2012 12:13 PM CST
Bailed-out Of America closing some branches in smaller cities? That's some of the best news I heard in weeks, thanks Newser. I hope that Wealthy Fargo will do the same this year.
793tango
Jan 13, 2012 7:31 PM CST
BoA is one of the most hated banks around here. I dispise these megabanks anyway because they cater only to the well-heeled and don't give a damn about 'the little guy'. I wouldn't care if BoA vanished from the face of the earth forever. The funny thing is that the company I work for (with branches all over the world) deals exclusively with BoA here in the States. No choice if a local office wants to deal with someone else. Not allowed by Corporate. If all of a sudden some BoA branches closed and our branches could no longer deal with them we'd be in quite a fix.
joe1148
Jan 13, 2012 5:53 PM CST
Back about 2007 or 8 BOA bought up a bank carrying one of my mortgages. But last month I got a letter from a bank (M&T) in MD informing me they had purchased my mortgage from BOA . BOA has also closed one of its two branch offices in our town. We live in Washington state. It appears that BOA has already started their plan. I have no history of the new bank but they can't be any worse than BOA. I have hated BOA since dealing with them in CA in 85/86. I moved to a smaller bank at that time, but remaining with them was not practical when I left CA. I had also told my mortgage broker when I refinanced the house in 2007 that I would not accept a BOA finance. And they didn't, but it appears that being the biggest bank and biggest assholes they still managed to once again enter my life. So all I can say is good riddance to a bunch of assholes.