Bank of Americas Problem - Research Paper Example

The bank spent billions of dollars in a bid to solve the issues Countrywide was involved in but almost four years later, the problems still persist and BAC has not been as profitable as it was before it acquired Countrywide. The reason has remained controversial about the failure of the bank’s performance soon after the acquisition and on the basis of this controversial issue; this paper has been decided to be taken up. Countrywide has been selectively considered as the most influencing fact towards the failure of the bank which is evident from various articles searched for during the making up of this paper.

Various charts consisting of figures related to the downfall in the bank’s performance after acquiring Countrywide have been incorporated in this paper so that a comprehensive notion of the entire fact can be derived. The aim of this paper has been set with respect to resolving the present problematic situation of the bank pertaining to its merging with Countrywide during the year 2008.  Bank of America Position Bank of America (BAC) prides itself in its position and the role it plays in serving households, businesses, individuals and families to grow and succeed as a way of fuelling the economy.

The bank upholds high standards of corporate governance and ethical conduct as a way of demonstrating its commitment. BAC is the biggest US lender in terms of assets and has about 13.9 million mortgages half of which are marred by controversy and are in the process of being segregated into good and bad. The effort to perform mortgage segregation on the part of BAC is aimed at staving off lawsuits arising from Countrywide mortgages (Plunkett, “Mortgages and Credit Industry Almanac”).

BAC works with the belief of holding strength and rebuilding strength on failure each time. The recreation of strength after failure or even sustenance of strengths is undertaken by the bank mainly through concentration on key goals of the corporation’s performance. The goals are obviously set according to the vision of the corporation and the strategies laid down by it for reaching to the vision in the long term. On this note, the vision statement of BAC is to evolve as the best company in the segment of financial services within the world.

BAC holds the belief that the bank has its entire resources set for achieving the long-term goal in the form of vision. The vision is deemed to be also achievable by the bank based on the capabilities that it holds. The bank believes that the capabilities of the bank are efficient enough for meeting the financial requirements of the clients and the consumers. These capabilities are believed to be taking the bank near to the vision it has set for the future (Bank of America, “Annual Report 2010”).

For the purpose of fulfilling its long-term vision, the bank concentrates heavily on its mission which is evident from the banks’ follow up of certain strategies.