Are Banks Really That Confusing?

Are banks really that confusing? Today, Fool.com finance analysts Matt Koppenheffer and Anand Chokkavelu answer that question.

Though Matt and Anand are specifically focused on the finance sector, they have opposing views on the topic. Matt thinks banks have a bad reputation as a Gordian knot of complexity that investors can't understand, though really most of the unknowns come from management. Anand thinks that as financial institutions get bigger, they become significant more complicated.

See more in the following video.

To help sort through one of the largest, and perhaps most complicated (or is it?) bank out there, check out our in-depth company report on Bank of America. The report details Bank of America's prospects, including three reasons to buy and three reasons to sell. Just click here to get access.

 

Anand Chokkavelu has no positions in the stocks mentioned above. Fool contributor Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America, Citigroup, Johnson & Johnson, and Wells Fargo. Motley Fool newsletter services recommend Johnson & Johnson and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On October 23, 2012, at 11:19 PM, cdb5556 wrote:

    The confusing part about banks is trying to establish a value for their holdings. With the new Obama era regulations allowing banks to mark their mortgage debt to face value instead of market, their books look a lot better than they would with "mark to market" rules that had been in place. So, yes, anyone trying to put a value on a bank will be confused.

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