B of A to Cut $15 Billion of Corporate Loans
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Bank of America Corp. plans to cut $15 billion from its outstanding loans during the next two years as it weeds out corporate borrowers that refuse to give the bank more profitable business.
The Charlotte, N.C.-based company is the second-biggest arranger of syndicated loans in the U.S. and already has reduced loans on its books to $65 billion from $99 billion in August 2000.
The bank will trim that to “$50 billion or below,” said Edward Brown, president of global corporate and investment banking.
Banks are reining in risk as recession and rising unemployment make it tougher for some customers to pay their debts.
Bank of America shares fell $1.26 to close at $60.80 on the NYSE.
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