Fed asks BofA to list contingency plan: report

Fri Sep 2, 2011 4:12am EDT

A Bank of America shareholder walks into the corporate headquarters prior to the start of the Bank of America annual shareholders meeting in Charlotte, North Carolina May 11, 2011. REUTERS/Chris Keane

A Bank of America shareholder walks into the corporate headquarters prior to the start of the Bank of America annual shareholders meeting in Charlotte, North Carolina May 11, 2011.

Credit: Reuters/Chris Keane

(Reuters) - The Federal Reserve has asked Bank of America Corp to show what measures it could take if business conditions worsen, the Wall Street Journal said, citing people familiar with the situation.

BofA executives recently responded to the unusual request from the Federal Reserve with a list of options that includes the issuance of a separate class of shares tied to the performance of its Merrill Lynch securities unit, the people told the paper.

Bank of America and the Fed declined to comment to the Journal. Both could not immediately be reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Sakthi Prasad in Bangalore; Editing by Muralikumar Anantharaman)

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (5)
Discovery451 wrote:
Contingency plan! WHOA ! That doesn’t sound good.

Sep 02, 2011 5:05am EDT  --  Report as abuse
jrj90620 wrote:
I have nothing against BofA,but if the bank failed,it would result in Buffet taking a hit.That would be nice.

Sep 02, 2011 12:06pm EDT  --  Report as abuse
ronni723 wrote:
All Americans ever wanted out of Bank of America was a modification without a hassle and to be treated as human beings rather than them treating you like low-lifes, which they are, not us.

Bullies on the left of us, bullies on the right us, bullies all around, into the valley of foreclosure ride the many thousands of homeowners, who go un-noticed and un-helped by the government elected.

A government that wants to stamp their approval on fraud that’s been taking place over the past 20 years or so and to assure the banks that no prosecution will be instituted.

I don’t wish anyone any harm but the banks deserve a little of what they dish out and perhaps this is part of it. (Payback).

Sep 02, 2011 4:54pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.