Regulators Warn Bank of America to Get Stronger

The Bank of America building is seen in Washington,DC on September 18, 2008. Markets were turbulent as they digested the AIG rescue amid anxiety about the state of the world financial system following the dramatic collapse on September 15 of US investment bank Lehman Brothers and the sale of Merrill Lynch to Bank of America. AFP PHOTO/KAREN BLEIER (Photo credit should read KAREN BLEIER/AFP/Getty Images)
Time to lift some weights. Photo: Karen Bleier/2008 AFP

Bank of America has been warned by regulators to strengthen itself in compliance with a confidential May 2009 memorandum that identified governance, risk, and liquidity management as problems that the bank had to fix, The Wall Street Journal reports. Failure to comply with the memorandum could lead to formal and public action, “which would likely mean intensified scrutiny and greater restrictions,” according to the Journal. As opposed to the double-secret type of scrutiny that the bank currently faces. [WSJ via Reuters]