In the following video, Motley Fool financials analysts Matt Koppenheffer and David Hanson discuss Bank of America (BAC 1.40%) and its recent stress test results. In particular, they discuss a form of projected banking operating earnings called the pre-provision net revenue, or PPNR. While the model that Bank of America ran for this number over the stress test period came in very similar to where it came out last year in the CCAR stress test, the Fed's calculation came in dramatically lower. Matt tells us how this affects the bank, and why B of A executives must be hopping mad behind the scenes.
You're reading a free article with opinions that may differ from The Motley Fool's Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Does Bank of America Want to Fight the Federal Reserve?
NYSE: BAC
Bank of America

Bank of America has to be mad about this major discrepancy.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase. 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.
Stocks Mentioned



*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Related Articles





Premium Investing Services
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.