Brian Moynihan's Complete Introduction of The New BAC

Bank of America has addressed critics and laid out a plan for the future.

The emphasis is on reducing costs, managing the mortgage lawsuits, and reducing the consumer business while putting emphasis on the firm’s international and corporate banking business. 

We liveblogged Moynihan’s big presentation of the plan this morning at Barclays–now take a look at the official Future of BofA slideshow.

The mortgage business is BofA's only losing business

To grow, BofA will focus on serving corporations more than consumers

But the individual customer will still receive top-notch service

BofA will remain a U.S. & World leader across many categories

That huge $12 billion loss is in commercial real estate

Despite the loss, BofA's has plenty of capital

Its current challenges are industry-wide: Sluggish Economy, Mortgage Trouble, Regulations

To combat those, BofA is cutting costs

It has to because as Americans lose jobs, BofA's consumer business loses opportunities to profit ....

Interest rates are stuck in the basement...

The good news about that is we're losing less money

And we're saving on deposit costs

The bad news is BofA's mortgage litigation expenses are increasing

But the 'New Bank Of America' Initiative begins next month, and it will cut costs

For example: job cuts. (This how Bank of America explains cutting 30,000 jobs. It has 200,000 employees it didn't hire thanks to acquisitions)

The initiative will save $5 billion in the first year

And of course it will deal with mortgage litigation

In the end the mortgage business will be completely re-vamped

BofA's Reps & Warranties exposure will sting, but it has an $18 billion reserve-cushion

The statute of limitations is up for some mortgage counterparties, so that helps too

BofA has plenty of capital to cushion the blow from mortgage litigation

In fact, BofA has increased capital 60% in the past 2 years

So it's set to make the Basel III deadline

Summary: We're Shoring Up Our Balance Sheet And, Despite Mortgage Fiasco, BAC Is a Customer-Focused Leader With Several Profitable Divisions

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