Bank of America has told the US Federal Reserve that it is willing to retreat from some parts of the country if its financial problems deepen, the WSJ says, citing people familiar with the situation. Executives put the potential move on a list of emergency scenarios submitted to the Fed in 2011, these people said. The report says no retreat is imminent and such a move would be seriously considered only if Bank of America needs to raise more capital to cushion itself from mortgage woes and other turmoil. The exercise wasn’t intended to force immediate action but rather to prepare Bank of America if its situation worsened, according to one of the sources, the report says.

This entry was posted by Kate Mackenzie on Friday, January 13th, 2012 at 5:34 and is featured in The 6am Cut London (13 Jan 2012), The Lunch Wrap (13 Jan 2012) . Tagged with bank of america, BofA, US Federal Reserve. Edit this entry.