When considering a position in Bank of America (NYSE:BAC) today, many are still bullish despite the risks because of its size and very low share price. But a responsible investor makes sure to always consider the bear perspective, so in this video, Motley Fool analyst Anand Chokkavelu details what some of the risks are with Bank of America.
Bank of America contains some "black boxes" -- unknowns that could present serious risk. Its purchases of Merrill Lynch and Countrywide recently mean that apart from its retail banking, it now has a fully developed Wall Street bank under its umbrella. The bank still faces litigation from the Countrywide acquisition, a big area of potentially hidden risk.
Anand Chokkavelu, CFA owns shares of Bank of America and bac (leaps). Austin Smith has no positions in the stocks mentioned above. 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.