Many investors believe it's impossible to understand and value a bank like Bank of America. When Bank of America disclosed on Monday that it had found an error in its internal accounting practices, the argument of the bank being a "black box" seemingly grew stronger.
In the following episode of Where the Money Is, banking analysts Matt Koppenheffer and David Hanson bust the myth that says investors should "sell in May and go away," dive into Bank of America's latest issue, and try to stump each other's investing knowledge in a round of "Stock Quiz." Matt believes the mistake at Bank of America says as much about the Federal Reserve and its stress testing methods as it does about Bank of America's inability to correct account for its assets and liabilities. Is the latest mistake a reason for banking "bulls" to finally admit that banks are too complex to be winning investments?
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David Hanson owns shares of Berkshire Hathaway, JPMorgan Chase, and PNC Financial Services. Matt Koppenheffer owns shares of Bank of America, Berkshire Hathaway, Citigroup, JPMorgan Chase, Morgan Stanley, and PNC Financial Services. The Motley Fool recommends Bank of America, Berkshire Hathaway, Coca-Cola, Starbucks, and Wells Fargo. The Motley Fool owns shares of Bank of America, Berkshire Hathaway, Citigroup, Coca-Cola, JPMorgan Chase, PNC Financial Services, Starbucks, and Wells Fargo and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.