US banks to benefit from BofA sell-off?

14 September 2011

A number of banks in the US could be set to benefit from an asset offload by Bank of America (BofA).

The lender is making the sales in an attempt to raise much-needed capital and Bloomberg reports this could spell good news for PNC Financial Services Group, Toronto-Dominion Bank and US Bancorp, among others.

Blake Howells, an analyst at Becker Capital Management, said: "The winners out of this will be those banks that aren't in the too-big-to-fail category."

The industry figure said the sell-off will prove to be most advantageous for those regional lenders keen to shore up their product lines.

According to the news agency, PNC is likely to prosper from the movement because it is currently pushing operations in the southeast - referred to as a BofA stronghold - while US Bancorp is investing in wealth management, an area associated with BofA's Merrill Lynch.

Meanwhile, Toronto-Dominion has already said it aims to purchase BofA's credit card business in Canada.

By Claire Archer

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