Bank of America is already the second-largest bank in the U.S. in terms of assets, but lately has indicated that it is looking to become even bigger. The Charlotte, N.C.-based full-service bank is pushing regulators to lift the 10% minimum on deposits owned by a single bank, according to The Wall Street Journal. "It is now able to buy banks with up to $70 billion in deposits," Richard Bove, analyst at Punk Ziegel & Co., said in a MarketWatch report. "It wants to buy more than that, which argues the bank wants to buys some very large institutions." BofA has been very acquisitive lately
with its purchase of U.S. Trust from Charles Schwab for $3.3 billion in cash on Nov. 20, 2006. U.S. Trust focuses on exclusively managing wealth for high and ultra-high net worth individuals and families in the U.S. In 2004, BofA
bulked up its presence in the Northeast with its purchase of FleetBoston for $50 billion. Some analysts also believe bank stocks such as BofA are not growing as fast as other sectors and have relied on cost-cutting and restructuring to realize growth. BofA, for instance, said in the third quarter that it would reduce its securities portfolio by $100 billion during the next several years. These future divestitures may be another hint that the Charlotte-based bank is freeing up some money for a potential big bank merger. The year has just begun ... but looks like BofA is trying to set up a stage for a big merger, which may just be on the horizon ... — Gerald Magpily
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