Report: Bank Of America (NYSE: BAC) Aims To Grow Business In China

Bank of America (NYSE: BAC) is looking to expand its business operations in China, according to recent reports.  The largest U.S. bank, based on assets, inherited a well established Asian investment banking business from Merrill Lynch when it acquired the bank.

According to a report by the Wall Street Journal, Bank of America is pondering the incorporation of a Chinese unit, locally in China.  The move would likely require a capital injection from the bank to fund expansion of the unit.

China is one of few countries in the world that is currently growing at a rapid pace.  Bank of America in recent months has been on a hiring initiative in the Asian region, possibly preparing for expansion in China and the surrounding area.

If the move is officially announced by Bank of America, the reception may not be warm domestically as the public may wonder why the bank isn’t focusing more on rebuilding in the U.S.

Bank of America reported a $194 million net loss in the fourth quarter of 2009 as it paid back TARP funds and continued to designate funds for loan losses.  The result represented a massive improvement from the fourth quarter in 2008.

The bank was also more active in helping struggling borrowers stay in their homes during the period, extending relief to 460,000 homeowners, a trend Americans would like to see continued focus on as foreclosure rates still run high nationally.

Bank of America reported last week that its loan modification efforts jumped more than 60 percent in February, starting 20,666 trial modifications under the government’s Home Affordable Modification Program.

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