BofA cuts lead to PNC, others increasing their reach

As BofA cuts off some of its fingers and toes in a sales attempt to bolster investor confidence and raise sorely needed capital, companies like PNC Financial Services Group Inc. and others are seeing their opportunity to hone in on specialized markets where they can profit from the big bank’s situation.

While PNC has already closed the purchase deal on U.S. retail division of Royal Bank of Canada and moved into the Southeast, which is BofA’s stronghold, U.S. Bancorp is zeroing in on corporate banking and wealth management. The BofA cuts are apparently emboldening the smaller players to invest in areas which the larger banks have generally had the ‘right of way’ to.

Bof A cuts are a sign of the need to show investors that the bank can stay afloat despite the drain on its funds by the mortgage crisis that they’re currently facing. The 30,000 job cuts announced earlier this week is also about tightening the belt and keeping their promise of shedding their operational expenditure load by a considerable figure. A spokesperson of Bank of America declined to comment on how its competitors may take advantage of the many BofA cuts that are in the pipeline. Upcoming cuts may be a signal for other institutions that aren’t in the ‘too-big-to-fail’ category to step forward and claim their honors in domains heretofore denied to them, purchasing traction in these areas.

Image By: Ed!

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