Bank Of America Adds Nearly $1 Billion To Its Bottom Line
By Kraken:Bank of America (BAC) recently announced that it will be reducing its debt by $40 billion. This is part of BofA's strategy to reduce risk and leverage as CEO Brian Moynihan tries to engineer a proper turnaround for the company.Since BofA will be reducing its debt, the interest payments will fall as well. BofA expects that the interest savings will be around $230 million a quarter, which comes out to be $920 million a year. It will plan to reduce debt by buying back Trust Preferred Securities and various forms of subordinated debt.This is a good move by BofA as it will help the company shore up capital as they handle the high level of toxic assets that continue to drag down earnings.Currently, a consensus of analysts believe BofA will earn $1.01 next year. An additional $920 million a year to the bottom line would increase theComplete Story »
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