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Bank of America Pulls Out of UK Credit Card Biz

I must admit I was a bit puzzled when I came across this article that reveals Bank of America’s plans to exit the credit card business in the U.K. It seemed to fly in the face of my last posting which seems to indicate that the Big Banks are searching far and wide for new customers. At least that appears to be the case for J.P. Morgan Chase.

The idea of Bank of America pulling out of a business that the article described as “profitable” wasn’t making sense to me. Until I got to the end of the article.

Down at the bottom there are some links to related stories including this one:

Bank of America posts record quarterly loss of $8.8bn

I guess the idea to pull out of the U.K. credit card market may make sense if Bank of America is contemplating cuts as a result of their huge losses (excuse me while I wipe away the tears).

Considering that the article says that Bank of America’s revenues for the quarter were down 55% when compared with the same period last year, the magnitude of the loss becomes a bit more clear.

Despite the massive losses, “analysts” seem to be painting as rosy a picture as possible regarding this situation.

“Excluding the charges, analysts said the BoA’s core operations were making progress,” the article says.

Is that kind of hearing a doctor say something like this? “Excluding the fact that both the patient’s legs were severed in the accident and has lost 75% of his blood volume, this morphine should help with the pain.”

And we all thought that all that “stimulus” and “bail-out” money would turn things around and having us all out in the streets singing “Happy Days Are Here Again.”

Do you think it’s time to start warming up our singing voices?

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