Report: BofA Could Sell U.S. Trust, Texas Assets if Under Stress
Originally published on Fox Business.
If things start to unravel again in the U.S. economy, embattled Bank of America (BAC: 8.00, -0.08, -1.05%) would reportedly consider unloading its prized U.S. Trust wealth-management business as well as its vast retail network in Texas.
According to The Wall Street Journal, BofA formulated the contingency plan at the request of the Federal Reserve, which is conducting stress tests on 31 large U.S. banks this year.
However, given the value of those businesses and signs of strength in the domestic economy, BofA execs don't believe they will be forced to hit this asset-sale red button, the paper said. And even if things do go awry in the economy or financial markets, the Charlotte-based lender could choose instead to sell common stock to raise cash.
The Journal previously reported that BofA has told the Fed it would consider selling shares linked to its Merrill Lynch business or selling parts of its national footprint in the event it came under new stress.
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