Unable to raise more capital from jaded investors, many American banks are now selling off their own assets to offset mounting losses, the online magazine Slate reports.
For example, Merrill Lynch plans to sell its stake in Bloomberg, regional bank SunTrust plans to unload long-held shares in Coca-Cola, and Fifth Third Bancorp will likely sell its asset management business.
“Such moves are also recognitions that management has screwed things up so royally in the core business that it has no alternative but to sell the remaining assets that the market still likes,” the article says. “But in this climate, many banks may find they don’t have a choice.”