Bank of America CEO Brian Moynihan in recent days has indicated that he is bent on selling more noncore assets in order to stave off either a massively dilutive capital raise or a sale of a true crown jewel, like Merrill Lynch.

In the most recent deal, Bank of America has agreed to sell the Canadian card unit to Toronto-Dominion Bank. This follows the sale of the bank's credit card operations in Spain. We'll no doubt see the bank sell more operations in Europe.

"While the credit card remains a fundamental core product for our U.S. customers, an international consumer card business under another brand is not consistent with that strategy," Moynihan said in a release.

Unfortunately, all these asset sales have the effect of unraveling the empire stitched together by Moynihan's predecessor Ken Lewis. According to Bloomberg, Moynihan has sold more than 20 assets or units since taking over for Lewis last year.

Even with the expected sale of the card units, the bank faces some open questions regarding its capital positions. Basel III compliance looms large of course. Right now, there's no reason to think that the bank will not be successful from a compliance perspective. But if earnings remain weak, which is a distinct possibility, it's options will be reduced. At some point, it might have to consider some dramatic, like selling or spinning off the Thundering Herd, which some people have been speculating about.

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