Aug. 9 (Bloomberg) -- Bank of America Corp., the largest U.S. lender, won’t need to raise extra capital to meet new international standards, Chief Financial Officer Bruce Thompson told Nomura Securities International analysts.
The bank will be able to comply by cutting expenses, selling assets and letting some holdings decline naturally as they mature by the time the rules become fully effective, Thompson said in a meeting with analysts led by Glenn Schorr in New York. The largest global banks are required to set aside extra funds under rules from the Basel Committee on Banking Supervision that will be phased in between 2013 and 2019.
``Bruce reiterated they do not see a need to raise capital and remain focused on building capital at an accelerated pace through risk-weighted asset mitigation and freeing up restricted capital components,’’ Schorr wrote in a note to clients today.
While Schorr prefers New York lenders Citigroup Inc. and JPMorgan Chase & Co. to Bank of America, he said the 20 percent plunge in shares of the Charlotte, North Carolina-based company yesterday “seems overdone as the bank still has solid consumer and capital markets franchises and a much-improved balance sheet versus 2008.”
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