Achieving the "New Normal"

In “Constructing the ‘New Normal’ Through Post-Crisis Discourse”, O’Hair defines the idea of new normal as “a broadly reconstituted order that incorporates new understandings and interpretations of the crisis into a revised status quo” (p. 4). It is basically the version of a company once it has restarted daily activities and has tweaked operations to reflect learning and growth as a result of the crisis. In some cases, the “new normal” is a positive for a company because it has seized the opportunity of a crisis. I believe in the case of Bank of America, this is true.

CEO Lewis resigned at the end of 2009 and Brian Moynihan, the former President of Consumer and Small Business of Bank of America, took over the company. As an employee of Bank of America before becoming CEO, Moynihan was a revised version of the status quo with a less tarnished reputation.

Bank of America also fully repaid the federal bailout it had received. This move diluted existing stock but wiped away an enormous chunk of debt. It gave Merrill Lynch the fresh start it needed and now that it was under the Bank of America umbrella, Bank of America could begin profiting from the merger.

These moves did not directly restore the lost shareholder trust, but they did allow the company to return to normal operations. The chaos associated with a company enduring mounting losses, quieted, and Bank of America resumed working toward its goal – making profit and expanding its reach. As the company stays on track with these goals, shareholder rage will subside and the new normal relationship between the parties will blossom.