Bank of America CEO: ‘We have an antitrust problem’
Bank of American CEO Bill McBride said on Thursday that his company had a problem with its bank customers and would be forced to raise prices to make up for the shortage.
McBride, speaking at the Bank of England’s annual general meeting, said the bank was forced to make “significant cuts” in services to fix its growing business.
The company said it would reduce the number of credit cards it sells to customers by 50% and to cut its credit card balance by $150 million in the first quarter of next year.
The bank said it expected to be able to continue to sell some of its cards through next year’s financial year.
But McBride added: “I have to say that our customers are not happy with our pricing.”
“We’ve made a decision to raise our prices, but we’ve got to raise them for the good of our customers,” McBride told reporters at a conference.
He said that some of the cost increases were unavoidable, given the economic slowdown and the threat of bankruptcy.
Bank of America has been struggling to get through the downturn, which has hit consumer spending and job growth.
It is the largest U.S. bank by assets and its chief executive officer is struggling to stay afloat.
McDonald said he believes the bank’s problems stem from a combination of factors.
“There is a huge number of customers that are dissatisfied with our business model and we have to make significant cuts in our business,” he said.
The banks chief executive is in the middle of an effort to raise $3 billion from investors, but he has been unable to convince investors to give him more funding.