“Bank of America Announces Extended Hours at Retail Banking Centers This Weekend to Meet Increase in Savings Deposits”
The press release emphasises the longer hours are because they want to make sure their customers can take advantage of the 4% rate on their new 7-month CD rates’. This is only half of the story. Could the other half be because Bank of America is taking in an unusual amount of large deposits in the past few weeks? My sources say ‘yes’. Bank of America appears to be doing very well on the deposit front. Whether this is at the expense of other banks, I do not know.
I am of BofA bull (or sorts). I still think they will feel pain in the next few years, as will most businesses due to the obvious economic down turn yet to come due to the total collapse of the mortgage and housing markets. But during the bubble years, they largely stayed out of the mortgage scene operating primarily as a mortgage banker unlike Wells Fargo, CITI, Chase and US Bank who actually have $10s of billions of on-balance sheet residential mortgage exposure.
While the Countrywide purchase my yet to prove disastrous, they have said recently they do not plan on making good on Countrywide debt and only plan to keep the good stuff. I wrote about it last week.
Draw your own conclusions on this one but when it comes to on-balance sheet mortgage risk and exposure vs size and liquidity, I am under the opinion BofA is one of the strongest large banks. Perhaps the general public is not as stupid as regulators think and understand this as well.
The BofA press release below says it all. -Best Mr Mortgage
Bank of America Announces Extended Hours at Retail Banking Centers This Weekend to Meet Increase in Savings Deposits
Friday July 25, 2:44 pm ET
Customer demand for bank CD and savings products continues to grow. For example, in the first two weeks of July, Bank of America nearly doubled its expectations for deposit growth in Los Angeles. Nearly three out of four dollars in new deposits in the company’s largest markets were deposited in Los Angeles and San Francisco this month.
OTHER MR MORTGAGE RELATED STORIES