Wednesday, June 27, 2012


2nd blog of the day.

The word about town is that the big banks should be broken down into smaller pieces.

Makes sense, the taller they are the harder they fall. It's difficult to manage, quality has tendency to suffer and things like the 2.9 billion dollar loss from Chase can happen. So, smaller is better.

One way to cut banks into smaller pieces. And I'm using Bank of America as an example.

Bank of America cuts it's territory into regions. The Western half becomes: Nations Bank. The South Eastern portion, remains Bank of America and the north eastern part is renamed Fleet Bank.

Each section has a President and manages it's business, but reports back to the Chair and CEO of Bank of America. Borrowing from Coke Cola, they become a member of the Bank of America Family.  

Still a large bank when needed, but smaller sections and easier to manage on ordinary days.


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