Photo: Lisa Du, Business Insider
Bank of America isn’t saying they have to sell this stuff. In fact, they’re saying their situation is never going to degenerate to that point.But if it does…
The Wall Street Journal reports that in the event of catastrophe, Bank of America would have to think about selling its retail-branch network in Texas and its U.S. Trust wealth-management unit. The bank disclosed this information to the Federal Reserve in a report at the end of last year.
Both of these sales would sting. The Texas network was bought during the savings and loan crisis in 1989 and basically signaled to the financial industry that Bank of America was on the rise. U.S. Trust is a 159 year old bank whose early clients included the Astor and Whitney families.
Mr. Moynihan… went out of his way to declare U.S. Trust untouchable. “We are not selling U.S. Trust, just to be clear,” he told employees during a Dec. 17, 2009, town hall meeting held to introduce him as the next CEO.