Bank of America Rose as Reports on the Formation of a 3,500-Person Wealth Lending Group Spread

Bank of America NYSE:BAC

Bank of America (NYSE:BAC)

According to a Reuters article published on Monday, Bank of America (NYSE:BAC) has established a division within its global wealth and investment management operation that is solely focused on lending to affluent customers.

Approximately 3,500 workers from BofA’s wealth and consumer divisions have moved into the new wealth management banking and lending group under the leadership of April Schneider, who formerly controlled $4.5 billion in costs across the company’s real estate portfolio, according to BAC.

According to reports, BofA CEO Brain Moynihan chose Schneider to head the wealth lending division in August. She reports to both Katy Knox, president of Bank of America Private Bank, and Andy Sieg, president of Merrill Wealth Management.

The new company would review mortgages, car loans, margin loans, and securities lending for rich clients. Along with continuing to manage investments and provide services like estate planning and taxes, it will employ financial advisors and private bankers. Employees from the bank’s wealth and consumer businesses make up the new group.

Notably, the lender’s worldwide wealth and investment management segment’s revenue came to $5.43 billion in Q2, down from $5.48 billion in the previous quarter but up $5.07 billion from the year prior. The price of Bank of America (BAC) stock rose 0.7% in premarket trade.

Bank of America Stock Forecast

Seeking Alpha’s technical analysis foresees a sharp decline in fortunes. Despite not being significantly impacted by the global selloff, Bank of America (NYSE:BAC) is still in a bearish pattern and is attempting to break out to the upside. It makes predictions based on patterns, while BOA officially remains above until there is a break above $37. A third wave broke through at $32 and turned around at just beyond $29.50 with a strong bullish shape. A bearish wave one is $50-$32 and wave two is $32-$37. Bank of America appointed Burkhardt as its new global i-banking strategy chief last week (Sept. 7).

Featured Image-  Megapixl @Merkuri2

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