Everybody knows Bank of America (BAC 0.81%) is swimming upstream in terms of profitability. Last year, the nation's second largest lender by assets earned $4.2 billion. Meanwhile, JPMorgan Chase (JPM 1.00%) and Wells Fargo (WFC 1.04%) reported net incomes of $21.3 billion and $18.9 billion, both of which were records for the respective companies. In the video below, Motley Fool contributor John Maxfield identifies one of the primary explanations for this disparity: mortgage-servicing rights related to toxic mortgages.
Where's the Hole In Bank of America's Balance Sheet?
By John Maxfield – Mar 11, 2013 at 10:51AM
NYSE: BAC
Bank of America
Market Cap
$378B
Today's Change
(-0.81%) $0.42
Current Price
$51.10
Price as of October 22, 2025 at 4:00 PM ET
Why mortgage-servicing rights are such a problem for B of A.
About the Author
I write about banks, trying my best to balance the good and the bad.