Bank of America's Day Is Off to a Great Start

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Big Banks had a busy week last week, riding the wave of a choppy market still spooked by QE3 taper worries. This week looks pretty good by mid-morning Monday, with the Dow, S&P 500, and the whole financial sector glowing green.

Things could change at any moment, of course, considering the volatility lately. But Bank of America (NYSE: BAC  ) , Citigroup (NYSE: C  ) , JPMorgan Chase (NYSE: JPM  ) , and Wells Fargo (NYSE: WFC  ) are all up, with B of A rising safely above the $13 per share mark once again.

More legal troubles
The latest news for the biggest banks isn't very good, however, and it comes in the form of an action by the European Commission charging B of A, Citi, and JPMorgan -- in addition to 10 other banks -- with blocking exchanges Deutsche Boerse and the Chicago Mercantile from entering the credit derivative market. These breaches of European Union antitrust rules are alleged to have occurred within the past decade.

As for Bank of America, it had its share of headlines last week, with a couple of items that might be of interest to investors.

Bloomberg reported that B of A is outsourcing its property valuation reports to India, purportedly to save some money. Cutting costs is sure to make investors smile, but the article notes that, along with the hefty paychecks the U.S.-based appraisers command, there is a matter of qualification. Reviewers in this country are licensed, inferring a level of expertise above a simple checklist, which is what B of A is providing to the workers in India. Will this new cost-cutting measure land B of A in court, further down the road?

Also, the brouhaha over B of A's alleged deviousness regarding processing refinances through the government's Home Affordable Mortgage Program has caught the eye of National Mortgage Settlement monitor Joseph Smith, who may be planning to make some trouble for the big bank as well.

Still, the bright economic news regarding upticks in construction and manufacturing activity for May seems to be lifting the entire sector, at least for the moment.

Will Bank of America be able to maintain its momentum this week? Whether it does or not, keep in mind that it's the overall performance of a stock that really counts. As Foolish, long-term investors, we recognize that one-day changes in share price don't make or break an investment. Even stocks have good days and bad days, so it's important to realize that sometimes they're not portents of dire news, but merely squiggles we can safely ignore. 

While you're waiting for the big banks to ramp up their dividends, you might want to look elsewhere for high-yielding stocks, The Motley Fool has compiled a special free report outlining our nine top dependable dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here.

Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2518461, ~/Articles/ArticleHandler.aspx, 9/29/2016 4:43:47 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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:01 PM
BAC $15.16 Down -0.22 -1.43%
Bank of America CAPS Rating: ****
C $45.80 Down -1.07 -2.28%
Citigroup CAPS Rating: ***
JPM $65.65 Down -1.06 -1.59%
JPMorgan Chase CAPS Rating: ****