¶ … real or hypothetical situation? The context of the report is based on the real world implications of the financial crisis on the banking industry and society as a whole. The report details the need for reform within the sector overall. Particular emphasis is placed on Bank of America, as it was a large component of the subprime-lending crisis.

Why did you choose this topic, and does it relate to you in any way?

I chose this topic because it has impacted both society and the world at large. Nearly $1 trillion in asset values were erased in 1 year due to the financial crisis. People were foreclosed on and subsequently lost their homes. Taxpayers were forced to pay large sums of money to bailout a corrupt and greedy system. This topic not only resonates with me personally, but with the entire developed world. We nearly were on the brink of financial Armageddon. The sheer gravity of this event and the consequences of not acting properly, I find very interesting

What is going to be a major challenge for you in this report, and are you considering another topic as insurance (in case you're not able to find enough information)?

The challenge will be to write about this topic in a succinct and coherent manner given the page constraints of the assignment. There is a litany of information regarding both Bank of America and the financial crisis. The problem will be to synthesize this information in a manner that is compelling for the reader. Particularly with the financial crisis, there were many moving parts. I will need to account for all these moving parts in a manner that is comprehensive and exhaustive. I will not consider another topic as this topic has plenty of information.

Bank of America Work Plan

Statement of Opportunity

The financial crisis of 2008 has created a litany of economic problems throughout the world. Nearly 8 years after the initial crisis many firms and economies continue to struggle economically. Bank of America in particular engaged in many nefarious procedures during the crisis. Robo-lending, misplaced incentives and outright fraud contributed to the near demise of the firm. As a result, Bank of America should use past experiences to downsize and eliminate risky operations at the firm. By shrinking the balance sheet of the bank, both society and Bank of America shareholders benefit.

Purpose and Scope

The purpose of the upcoming report is to outline the reasons why a corporate downsizing and restructuring is recommended. Analysis of both the pros and cons of this initiative will be analyzed and discussed. Recommendation will be supported by thorough analysis and due diligence. The following report will first document the need for banks with a market economy. Particular emphasis will be placed on their unique role of capital allocation within society. A discussion on the risks embedded within the banking industry will follow. In this section I will discuss why the elimination of non-core assets will actually help Bank of American become a more viable franchise. The firm must take two steps back to move three steps forward.

Sources and Methods of Data Collection

My data will come primarily from financial publications and resources. I will rely heavily on corporate filings with the Securities and Exchange Commission (10-K, 10-Q, etc.). I will also use reputable publications such as the Wall Street Journal, Barron's and others.

Background

Prior to the financial crisis, Bank of America was considered one of the most profitable companies in America. It had an unrivaled deposit growth franchise, strong free cash flow, and did business with 1 out of 2 Americans. However, aggressive tactics and acquisitions soon led to the cataclysmic share price depreciation. The aggressive acquisition of Countrywide, one of the perpetrators of the financial crisis, left the bank reeling for capital infusion and government assistance. Ill-advised purchases that and hubris led a CEO to disregard shareholder and society demands. Instead, the CEO was primarily interested in expanding his own domain. As a result, these businesses that once promised profits should instead be discarded from the core franchise of Bank of America. Only then can the bank focus on what is really important ... taking deposits and lending money.

Audience

My report will be prepared for the Board of Directors of Bank of America. This document will also be prepared for Bank of America shareholders who can vote or initiate corporate operations.

Preliminary Outline

I. Executive Summary

a. Summary of Report

b. Preface of conclusion and recommendations

II. Introduction

a. The importance of a strong financial system

b. The function of capitalism

c. Background of Bank of America

d. Sources and methods of research

e. Scope

f. Limitations

III. Body (Questions to be covered)

a. Why will downsizing and eliminated riskier banking operations benefit Bank of America, society,...

What are the advantages of downsizing and eliminating operations?
c. What are the disadvantages of downsizing and eliminating operations?

d. Can risk be completely eliminated?

e. Why did the bank have these operations to begin with?

i. Short-Term emphasis

ii. Greed f. Is Too Big to Fail eliminated or has it gotten worse?

g. What is being done to prevent a massive downsizing from occurring again?

IV. Conclusion

V. Recommendations

VI.