Bank of America announced last week that credit card executive Bruce Hammonds will retire at the end of December. Hammonds has worked in financial services for four decades, and was one of the original founders of credit giant MBNA. When MNBA was acquired by Bank of America in 2006, Hammonds became head of the bank's global card services.
What does Hammonds' retirement mean for Bank of America? CEO Ken Lewis said of Hammonds, "We have all marveled at his coolness under fire, his incredible knowledge of the credit card industry and his quiet but effective way of communicating with associates, customers and investors."
Maybe Bank of America could learn a few things from Hammonds. Namely, it's not a good idea to keep offering easy credit in today's economic climate, especially with record losses looming over the credit industry and more losses predicted to follow. Still, Bank of America has been reportedly offering up to $50,000 in unsecured credit lines with an introductory 0% APR.
A spokeswoman from Bank of America stated, "[We] believe that Bank of America is well positioned to work through this current economic cycle." For the sake of their customers, let's hope so.
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