The current leadership of Bank of America keeps undoing acquisition after acquisition by its previous head, Kenneth D. Lewis.
Now it is selling off its overseas credit card units.
Perhaps the most disastrous purchase by Ken Lewis was Countrywide. The bitter dregs of its risky mortgages are yet to be fully known but as each month goes by, Countrywide seems to pull down Bank of America.
Countrywide was go-go-go for years and kept eating up more and more of the subprime housing market until subprime went bust in 2007, almost taking down Countrywide with it. Countrywide engineered a quick sale to Bank of America and the bank has been licking its wounds ever since.
Exiting the Canadian and European businesses would lower Bank of America’s capital needs by eliminating $27.6 billion of more-risky assets and may help it avoid having to sell new shares, Ed Najarian, head of bank research at International Strategy and Investment Group, said Monday in a research note.
Bank of America is mulling its options regarding the U.K. and Ireland businesses it is exiting, said Jerry Dubrowski, a company spokesman, declining to comment on what those options are. The TD transaction is expected to be completed in the fourth quarter, the company said in the statement.