The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Opinion

Bank of America bets against break-ups

Brian Moynihan is determined to build his big bank, whatever regulators might threaten.

Bank of America Merrill Lynch seems to be defying the industry-wide viewpoint that big financial institutions are going to be broken up. It has launched a plan of attack that involves the firm getting much larger and more complex. Chief executive Brian Moynihan is shooting for being a global force in corporate banking and investment banking and has his next-level-down business heads hiring anyone who can bring in clients in those businesses.

He is ensuring Merrill Lynch’s thundering herd of private-client brokers remains a force, and he also intends to continue with US retail and commercial banking, even as analysts and investors begin to question the long-term return on equity to be derived from the bank’s largest and most defining legacy business. A task in itself, Moynihan also seems intent on building the cross-selling capabilities among the various units so that they become more dependent on each other. If there are those with fears that financial institutions might need to be broken up, Moynihan is apparently not one of them.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree