January 15, 2008

BofA to reduce Investment Banking Operations

Today BofA announced that it will scale investment banking operations particularly trading activities.

I think this is a positive news. Trading earnings are volatile and unpredictable and bear no relation to BofA core operations that revolve around consumer banking. In any case investment banking was not a big revenue generator for BofA.

In this I also like management ability to take action and control expenses in light of the economy and possible revenue slow down.

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