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According to Maxfield, the aftermath of the crisis saw some banks, like Wells Fargo and JPMorgan Chase, thrive as they recovered and adapted. In stark contrast, Bank of America faced substantial challenges in integrating Merrill Lynch while navigating a completely transformed regulatory landscape. Lapera and Maxfield emphasized the urgency to prevent a domino effect in the banking sector, which led to heavy government intervention and an unprecedented acquisition.
Regulatory Changes and Their Impact
Post-merger, Bank of America found itself at a disadvantage due to new regulatory requirements that emerged in response to the financial crisis. These regulations fundamentally altered how banks operate, placing stricter demands on liquidity, capital ratios, and risk management.