BofA Sets Up Cisco's TelePresence - Analyst Blog

In order to manage meetings flexibly and reduce the need of executive travel, Bank of America Corp. (BAC) said on Monday that it will set up Cisco Systems Inc.’s (CSCO) TelePresence videoconferencing equipment.

TelePresence is a highly realistic video and audio links and data exchange equipment, which provides virtual business meeting capabilities.

Charlotte-based BofA, which already uses 28 TelePresence systems, initially intends to install 200 TelePresence units for its global operations by the end of 2010.

According to the new arrangement, there will be two types of conference rooms, one for six individuals and the other for 18 individuals.

TelePresence equipment was launched by Cisco in Oct 2006 with several features including multiple plasma screens that provide real-size images of the participants.

Although an agreement between BofA and Cisco has been entered into, the details of the deal remain undisclosed.

Bank of America’s fourth-quarter results were a nickel worse than the Zacks Consensus Estimate. Results were hurt primarily by a $4.0 billion negative impact associated with the repayment of the bailout money. Also, continued weakness in the overall economy and stress on consumers continue to result in high credit costs.

The market turmoil was more harmful to BofA than its peers. However, the company has concluded its biggest acquisitions. BofA acquired Merrill Lynch almost during the height of the financial crisis last year. It also acquired Countrywide Financial Corporation in Jul 2008.

The CEO views these deals as beneficial for stakeholders of the company. Furthermore, this will allow the bank to focus on rebuilding customer relationships.

BofA said last week that it would forgive about $3 billion in principal loan amount for about 45,000 troubled borrowers. BofA is expected to start the process in May 2010. Following the execution, BofA will be the first U.S. mortgage lender to take such a systematic approach to reduce mortgage principal to help distressed borrowers by preventing foreclosures.