Tomahawk, WI 01/31/2014 (BasicsMedia) – It is an open secret that Bank of America Corp (NYSE:BAC) has spent a large portion of the last five years trying to recover from the effects of the mortgage problems. Some of the activities it has carried out include laying some workers off, as well as boosting its capital levels. Compared top the efforts required to build a banking business from such dire marketing conditions, the bank has done rather well. However, now it has to put in more effort bearing in mind that the economy is currently quite sluggish. It has to do this while avoiding past loose lending practices.

Some of the bank’s former loose lending practices were responsible for the damage that BAC suffered and that almost led to its collapse. However, when the bank recently published its fourth quarter financials, it was obvious that it did much better than analysts had predicted. Largely, the success that Bank of America Corp (NYSE:BAC) has experienced is attributed to a number of factors. The bank went on an exercise that saw it drive down its former expenses that contributed to its troubled past. The bank’s acquisition of Countrywide Financial, a mortgage lender, in 2008, was a poor decision.

The bank’s top executives appreciate that they have to work extra hard to do much better than they have done up to this point, while understanding that their efforts will be made more difficult due to the prevailing tougher macroeconomic condition. However, it still has to ensure that it gets new ways of growing its revenue base, if it intends to see the fruition of the success it has managed to enjoy thus far. The bank has opted to focus its attention on serving the needs of its wealthier clients and corporations, who never suffered as much as the others did.

Bank of America Corp (NYSE:BAC) saw its traditional mortgage business shrinking during this latest quarter, just as it has done in the past five years. The mortgage industry has gone through a tough 2013, and almost all major providers of mortgage services suffered or were affected during this period. However, the bank saw an addition of 20 percent of its mortgage business from the services it offered in wealth management to its clients. Bank of America Corp’s officials say that their profits will increase by holding on to these mortgages, since they are too huge for Freddie Mac or Fannie Mae.

Bank of America does not intend to be a mortgage banking institution with a broad base. What they are trying to do is to cater for the needs of its upscale customers in the belief that this is more than sufficient to help it achieve its goals. The concern within the industry is that although Bank of America is meeting its targets by taking such a strategy, on the other hand, it is alienating a large portion of American homeowners, who are not as wealthy. The bank also intends to increase its personnel in the wealth-management division.

Thus far, Bank of America Corp (NYSE:BAC) has done remarkably well and will meet the investors’ goals and objectives. As to how long this will last, that remains to be seen.

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