Bank of America to spin off $5 billion private equity unit

[MilesColtrane]

Source: Reuters

Bank of America Corp plans to spin off its last large private equity fund, with more than $5 billion in assets, and has no plans to make new private equity investments, a company spokesman said on Tuesday.

Bank of America, the largest U.S. bank by assets, will spin off BAML Capital Partners into its own unnamed firm.

The firm would then manage the bank's private equity assets for a fee -- winding those positions down over time -- and could begin accepting outside investors.

-snip-

The spin-off is the latest in a series of moves by the bank to comply with the Volcker Rule, a part of the financial regulatory overhaul law passed in 2010 that limits proprietary trading, or investments by banks using their own capital. It also fits with Chief Executive Brian Moynihan's efforts to sell off extraneous business units.

Read more: http://www.reuters.com/article/2011/04/20/us-bankofamerica-privateequity-idUSTRE73I7AM20110420?feedType=RSS&feedName=topNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FtopNews+%28News+%2F+US+%2F+Top+News%29&utm_content=Googl

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This isn't exactly reinstating the Glass-Steagll Act, but it is a start.

[annabanana]

1. And at EXACTLY the same time when their checking & savings accocunts

are starting up $12 monthly fees (unless you have $1000 you can "park" permanently)

Pretty damn ballsy for an outfit that doesn't pay taxes, no?

[apnu]

2. I'm very happy with my credit union. I've been in one for a decade.

And I will never consider a commercial bank again.