It's no secret that Bank of America (NYSE:BAC) is weighing more asset sales to shore up its capital position ahead of new capital rules from Basel III. But how far will it go? Few would be surprised if it sold all or part of its $21 billion stake in China Construction Bank Corp. But would it go so far as to sell a crown jewel?

CNBC has raised the issue noting that "pressure is building from outside investors and inside Bank of America for a dramatic change. There have been talks at high levels about the possibility of selling portions of the bank-including the Merrill Lynch business it acquired at the height of the financial crisis."

The news report stresses that the idea remains just that, and that there is plenty of skepticism about the price the unit might fetch if it were sold or spun off. But after the dismal second-quarter earnings reports and as the stock languishes below book value, you would have to think the board is ready to consider major moves.

What the board really has to do is figure out exactly what Bank of America is. Is it a commercial bank? Or is it a commercial bank with a strong wirehouse appended to it, with a decent investment banking unit added on as well? And could any value be unlocked by spinning off or selling various units?

It may come down to whether the bank has truly discovered great synergies between the Thundering Herd and the retail bank operations. Many are skeptical as to whether the two truly complement each other. Then again, Merrill Lynch was one of the few bright spots in the second quarter.

For more:
- here's the article

Related Articles:
More investors oppose Bank of America deal with bond investors
Bank of America meets expectations
Bank of America sends $30,000 in social security to wrong customer