Written Assignment 3 - Bank of America Corporation

Written 3 - Bank of America Corporation - Assignment Example Purchasing countrywide financial and Merrill lynch can be termed as an unwise decision taken by the company (Richard, 2013) as they did this while the economy faced a financial crisis. Therefore, the company failed to make sound decisions relating to its operations. Bank of America serves as the largest consumer bank in the United States of America. It has a large number of members, both locally and internationally. Being a global company allows it to reach a wider group of customers, thus increasing its competitiveness. More to these, the company deals with a multiple of activities. The activities include consumer and small business banking, corporate banking, credit cards, mortgage lending, and asset management. The various activities contribute to the success of the company as losses in one segment can be countered by profits in another sector. More to this, the law suit against the company exposes it to negative publicity, which may lead to greater losses of the company. The bank also faces a financial shortage, which makes the running of the organization difficult. According to the company’s balance sheet for this period, the company experienced a decrease in its cash resources by $12912 million, its fixed assets dropped by $1194 million, while the noncurrent assets increased by $42804 million. The debtors of the company increased by $3708 million. This shows that the company’s operations became worse from 2009 to 2010. More to these, the liabilities of the company grew by $44806 million, thus depicting financial difficulties for the company. In terms of shareholding, the number of preference shares reduced by more than half within this period, but the ordinary shareholding increased marginally. However, the company received a decline in the amount of total equity from 2009 to 2010. Given the need to retain, and attract more customers to the company, the bank should focus on promoting the convenience of