Bank of America Corp's Booming Business

Bank of America's retail bank gets most of the attention, but its investment banking activities are important, too.

Jul 8, 2014 at 7:00AM

Bank of America (NYSE:BAC) has a booming investment and corporate banking business built on the back of robust mergers and acquisitions, including hot deals like the pursuit of Hillshire Farms

What's helping investment and corporate banking -- low rates and even lower volatility -- is hurting the company's trading operations. Rivals Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM) have seen trading revenue decline, and continue to warn of lower revenue from FICC-based businesses.

Can Bank of America remain an ever-growing investment banking player? Will the lack of volatility forever ruin the profitability from rates and currency trading?

In the following video, Fool Contributors Jordan Wathen and Patrick Morris join Motley Fool Bureau Chief David Hanson to discuss the ups and downs of Bank of America's investment banking and trading operations.

Warren Buffett: This is a "real threat"
Warren Buffett has staked billions on Bank of America -- a move some considered risky. Buffett didn't think so, but now he actually is scared of a new threat to his bread-and-butter business. Click here to access a FREE investor alert on the company we're calling the "brains behind" the threat.


Jordan Wathen 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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