Bank of America and Its Giant Ego

In the following video, Motley Fool financial analysts David Hanson and Matt Koppenheffer take a break from looking at the big banks in terms of their tangible book value, and instead examine the intangible assets that fall under the category of goodwill. They note that goodwill composes 30% of Bank of America's (NYSE: BAC  ) total equity, the highest of all the big banks, and discuss how it got to be such a large portion of BAC's equity and whether or not the value of BAC's goodwill may be overstated a bit. 

Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

 


Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 02, 2013, at 7:50 PM, sluggo47 wrote:

    BAC has a huge goodwill ratio because it deserves it. Aside from their Countrywide portion, the bank is the most recognizable bank brand in America. They would have the top bank product if it were not for the ill timed purchase and integration of Countrywide. IMHO

  • Report this Comment On April 02, 2013, at 8:28 PM, wellington2005 wrote:

    Enough is enough guys. This relentless bashing of Bank of America only means one thing. I know information is knowledge but it would appear your motives are more for your own monetary purpose. Perhaps i'm wrong. (motleyfool articles on BofA have appeared daily on Yahoo news page for awhile now)

  • Report this Comment On April 02, 2013, at 9:18 PM, Rusty56 wrote:

    Articles appear Daily - go figure,they are unsuccessfully trying to self subscriptions.

  • Report this Comment On April 03, 2013, at 5:53 AM, FelixCaliferous wrote:

    The day that BAC raises its dividend, there will be a sea change.

Add your comment.

DocumentId: 2342328, ~/Articles/ArticleHandler.aspx, 4/20/2014 10:07:57 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement