Bank of America is to spend up to $400m (€304m) to boost its capital markets business in Europe and Asia over the next three to four years.

Ken Lewis, chairman and chief executive, told a conference last week the bank had spent $600m in the past two years expanding capital markets in the US and was now aiming to spend between $300m and $400m overseas. He said: "We are just about there in capital markets in the US and have moved from 11th to sixth in fixed income." The bank's commitment to build a business in Europe is likely to further scotch speculation it is sizing up a deal to buy the UK's Barclays. Merrill Lynch analysts prompted a burst of bid speculation after claiming Bank of America was interested in making an offer worth up to £60bn (€89bn) for Barclays. At the time, Lewis appeared to downplay the possibility of a purchase, saying it would take "some convincing" for him to do a European deal. The bank is 26th in European debt capital rankings with a market share of less than 1%, and 35th in M&A, this year according to Dealogic, an investment banking research provider. In 2004, Lewis pledged to plough more than $600m into developing global corporate and investment banking.
In May, Kenneth Leet, head of global investment banking in the region, left after a year in the job.