Tuesday, December 2, 2008
Challenges for Bank Of America
Lately, everyone has been worried about whether or not their money is safe or even if they should bank with any financial company. Currently Bank of America faces the following challenges: The following remarks are taken from Liam McGee,posted on BOA's newroom website, regarding challenges one of the many different locations around the U.S.
"Currently there is a demographic shift that may challenge Bank of America and other banks too:
• Anglos now make up less than half the state's population, with
• Latino's nearly one-third, or about 11 million
• California's Latino population alone would make us the eighth largest state...bigger, as an example, than Michigan or New Jersey
• Asian & Pacific Islanders comprise about 13 percent, or 4.3 million, and
• African-Americans make up about 7.5 percent, or 2.5 million
• Together, these three groups represent $1.2 trillion in purchasing power per year
• Non-anglo groups will account for 80 percent of population growth over next 10 years."
As this particular BOA faces challenges, many other banks are as well. Currently, the cause right now is because of the economic recession we as America are faceing. But lets not rule out other countries that are facing similar problems.
According to BOA, "It is also important that we understand the extent to which these demographics impact the lifeblood of our state's economy - small business(Bank of America, 2008)."http://newsroom.bankofamerica.com/index.php?s=speeches&item=73
According to BOA, "Bank of America believes that by becoming a part of the solution, we help to build a society where everyone can participate and make contributions. We help to build an economy that can continue to grow and flourish. We help to build a population base that can provide the new ideas and talent we're going to need in the banking industry(www.bankofamerica.com)."
Currently Bank of America financial situation is somewhat stable, but the thing to keep in mind is that Bank of America is one of the few banks left standing due to wise decisions made from within.