This year's stress test wasn't just a head-ache for Citigroup. It also created more stress for Bank of America (NYSE:BAC), leading to halted dividends and share buybacks, and has held Bank of America's share price back.
In this episode of The Motley Fool's Where the Money Is, Motley Fool financial analysts David Hanson and Tyler Riggs shed light on the ways in which Bank of America's actions following the discovery of an accounting error could pioneer a culture of self-reporting in the banking industry.
Although the error may have lowered the company's share price in the short-term, this could be an encouraging sign for Bank of America in the long-term. But what's the incentive for banks to self-report errors to the Fed if headlined events ultimately diminish shareholder trust and destroy value?
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David Hanson has no position in any stocks mentioned. Tyler Riggs has no position in any stocks mentioned. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America. 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.