Can You Trust Bank of America's Gains Today?http://www.fool.com/investing/general/2013/05/03/can-you-trust-bank-of-americas-gains-today.aspx Jessica Alling
May 3, 2013
After days of tumbling by its share price, it's hard not to get excited about any jumps by Bank of America's (NYSE: BAC) stock. Up 0.5% just before the closing bell, the bank came back down to Earth after an exciting first several hours of trading. So without any big news from the bank today, can investors get behind the bank's big rise this morning?
A little perspective
If a judge decides that the arguments for a $8.5 billion settlement Bank of America reached with investors over Countrywide mortgage-backed securities are not sufficient, the bank could be on the hook for an even larger amount of money to investors. B of A has made significant progress in putting the Countrywide debacle behind it, but this legal decision and some others continue to follow it around and dissuade investors from buying into the bank.
And if legal trouble wasn't enough, new legislation is building support in Congress that would simplify the capitalization re