Bank of America seems to be imploding. From the time when they were first bailed out until last week when they announced they were laying off around 40,000 employees, they’ve struggled to get back to the prominence they held before things started to go haywire. Not that no one believes they didn’t know what was coming, nor that they didn’t know part of their policies as it regards housing were to blame.

Just three years ago this month their stock price was around $56.00 a share. At the close last Friday it was sitting at $6.98. They seem to have made misstep after misstep if you ask me. They started off by being power hungry and aggressive on foreclosures. Then they tried to pay back the government bailout money without being on firm ground. Next they decided to try to generate big funds with some sneaky bank and credit card fees that ended up giving them bad publicity. And finally, when the press really seemed to be beating them down, they tried to change policy, be more friendly, hoping that people would forgive them for how they’d been treating them.

Is it bad leadership? Of course it’s bad leadership! It’s bad management, bad processes, bad decisions across the board. If you compare them to Citigroup, another bank that was in trouble, it makes you wonder about the talent pool. Citigroup’s closing price last week was $26.87, although, to be fair, their rate 3 years ago at this time was around $190, and 5 years ago was hovering near $340 per share. Maybe the words “genius” and “banking” don’t go together in the first place.

Will Bank of America totally crash and burn? If they do, it would be another crippling move to the economy, which is already shaky. There will be no more government bailouts; the Tea Party will see to that. That big tall tower in the Manhattan skyline either goes dark or gets taken over by someone else. All those branches across the country shut down, or the organization is broken up and taken over by multiple owners, because I doubt one bank could absorb them all in this economy.

Of course, they could always turn things around in some fashion; at least this news story gives them a potential plan. I guess we’ll see as time goes on.

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