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Busy Bank of America Loads Up on Challenges





MBNA is a good fit for BofA, but BofA also paid the full price.

From Wall Street Journal:

Lehman Brothers analyst Jason Goldberg was lukewarm on the MBNA deal because Bank of America is taking a big stake in a slowing market -- and MBNA's performance has slowed even more than the industry average. Cards have faced competition from other forms of credit, including low-interest home-equity loans. He said the deal also underscores that Bank of America continues to rely on growth by acquisition, rather than building on its existing customer base, which Chairman and Chief Executive Kenneth Lewis has repeatedly said was his strategy. "There's the lingering question of, do they have the ability to grow organically?" Mr. Goldberg said.

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