Bank of America is No Longer the Biggest Bank in America

October 19 00:00 2011

New York, October 19 ( – Bank of America (NYSE: BAC) has lost its premiere rank of being the biggest bank of the US as JPMorgan surpassed BofA’s $2.2 trillion in assets. However, it earned $6.23 billion in the quarter, and shares jumped 10% to $6.64. CEO brian Moynihan has now been given the task of reversing the company’s struggling consumer empire and to convince Wall Street that the era of its near-obsessive zeal for acquisitions and growth is now at an end and that it will now concentrate on raising profitability by slimming down.

Moynihan has been telling his employees, investors and analysts that “We don’t have to be the biggest company out there; we have to be the best.” Although revenue fell during the third quarter in five of its six main business lines, there were no new blowups in its troubled mortgage business.

RBC Capital Markets analyst Joe Morford said, “In the end, the results weren’t as bad as feared,” and added that “They still have a lot of work to do, but they’re making progress.”

In the midst of asset sales and unusual accounting charges, BofA earned $6.23 billion, or 56 cents a share, compared with a $7.3-billion loss, or 77 cents a share, a year earlier. Its revenue jumped 6% to $28.7 billion including the $8.3 billion-sale of its stake in a Chinese bank.