Skip to main content

Bank of America: What Change-making looks like while in progress


Courtesy: businessinsider

When Brian Moynihan stepped in as CEO, BofA was one of the most despised companies, reeling from the financial crisis with huge mortgage losses.

The new CEO, as per Fortune July 25, 2011, was seen as a "charisma-challenged" and "rough-around-the-edges" personality with a "just-the-facts demeanor" ... Also, he won't win any awards for public speaking ... or do any PR ...

Does that sound like a "good fit" for the biggest turnaround operation in the history of financial services?

Look at his strengths ... hard-core banking brainiac ... dealmaker ... team builder ... crisis manager ... totally immersed in the data and the details.

Moynihan recently announced a settlement that takes a giant step toward ending the home loan mess. This not only removes doubts about BofA's future, but might even turn out to be a model for the rest of the industry.

Moynihan wants to run the bank the way banks were run before the industry started chasing growth at all costs. He does not want to make lots of money in good times, then hand it all back in a downturn, and repeat the cycle. His 2-step strategy:

1. First retain virtually all earnings to build sufficient capital cushion

2. Then return all earnings to investors
Moynihan believes that his strategy will turn BofA into one of the world's most profitable companies. Experts are betting on his promise. If he can really pull it off, Moynihan's remaking of BofA will be considered one of the greatest turnarounds ever.

Comments

Popular posts from this blog

Business model intimacy

Courtesy: NobelPrize.org
The Grameen Bank success story continues to be researched and written about. Other companies have tried to repeat the Bank's model. Is there a fundamental difference between the original innovation and the followers? In MIT Sloan Management Review (Summer 2009), Erik Simanis and Stuart Hart compare the original model with that of India-based Hindustan Unilever's model and point out a crucial difference.

Grameen Bank was a result of personal bond and shared vision between Nobel laureate Muhammad Yunus and Bangladeshi farmers/villagers. Yunus and the villagers spent quality time together as a community before the innovator launched the bank. While Grameen Bank became a profitable and scalable village bank, the authors say that Hindustan Unilever's project is "unlikely to grow into anything more than a new distribution channel." While Grameen Bank generated a "groundswell" of demand," Hindustan Unilver's entrepreneur turnov…

clinton/obama/media cabal to be exposed starting june14

A lot of people have surrendered themselves to be constantly duped by leftist media outlets.

The duped people now believe things that are entirely different from facts – as regards the obama/clinton/media cabal.

For the duped leftists, the coming Inspector General (IG) reports and follow-up actions (assuming they're both carried out unobstructed) will be a shock.

The shock will be so powerful, the duped leftists may react in insane and dangerous ways. (Well, they've already been behaving in such ways, but they've been doing so for a different set of reasons and largely unaware of facts.)

Broadly, the IG reports are going to be about treasonous/ unconstitutional/ illegal activities, power abuses, and obstructions for the purpose of:

1. Exonerating a criminal Hillary

2. Covering up the crimes of the Clinton folks

3. Attempts to block a presidential candidate

4. Attempts at a coup against a constitutionally elected president

5. Obstruction of presidential duties

6. Public deception…

Elon's April 1 tweets: part of an emerging leadership style?

First his tweets and then my comments ...

Tesla Goes Bankrupt
Palo Alto, California, April 1, 2018 -- Despite intense efforts to raise money, including a last-ditch mass sale of Easter Eggs, we are sad to report that Tesla has gone completely and totally bankrupt. So bankrupt, you can't believe it. — Elon Musk (@elonmusk) April 1, 2018
There are many chapters of bankruptcy and, as critics so rightly pointed out, Tesla has them *all*, including Chapter 14 and a half (the worst one). — Elon Musk (@elonmusk) April 1, 2018
Elon was found passed out against a Tesla Model 3, surrounded by "Teslaquilla" bottles, the tracks of dried tears still visible on his cheeks.

This is not a forward-looking statement, because, obviously, what's the point?

Happy New Month! pic.twitter.com/YcouvFz6Y1 — Elon Musk (@elonmusk) April 1, 2018
Almost all commenters appear to love Elon's April 1 tweets. But one person commented "CEOs of public companies shouldn't be putting out tw…