Why Shareholders Should Be Patient With Bank of America Corp

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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  • Report this Comment On July 07, 2014, at 8:28 AM, funfundvierzig wrote:

    Long-suffering BAC shareholders have been patient for 8 years since the stock hit a peak of 55, and has lost over 70% of its value since, thanks to colossal malmanagement. …funfun..

  • Report this Comment On July 08, 2014, at 12:58 AM, sluggo47 wrote:

    Spoken like a true short and not a real investor Mr. Fun Fun. Obviously you were one of the poor investors that lost that 70%. Go long now and recoup some of your losses.

  • Report this Comment On July 08, 2014, at 7:27 AM, funfundvierzig wrote:

    Readers and fellow Fools, as you can see in this thread vindictive supporters and surrogates of Bank of America Management keep up their drumbeat of off-topic, distracting personal attacks on independently-speaking investors who dare to question the quality and performance of Bank of America leadership.

    Their unprofessional misconduct over the internet is a waving Red Flag for investors. What is being hidden and covered-up in this historically fraud-infested Bank that investors cannot discuss candidly and openly without personal harassment and threats?

    Disclosure: The undersigned has no position in BAC currently, neither short nor long. Nor have we ever lost money on a trading or investing position in BAC.


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Tyler Riggs

Tyler is an Editor / Analyst in The Motley Fool's Financial Services Bureau. A D.C. transplant originally from Cleveland, he is a hopelessly devoted Browns fan -- a potentially regrettable investment.

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8/28/2015 4:02 PM
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