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What Could Still Go Wrong at Bank of America?

By Matt Koppenheffer and David Hanson - Apr 22, 2013 at 9:05AM

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The market did not take Bank of America's Q1 earnings well. What else could go wrong?

Bank of America reported its first-quarter earnings, and investors were underwhelmed. In this video, Matt Koppenheffer compares Bank of America's performance with Wells Fargo's. By all metrics, Wells Fargo did better. Loan origination, return on equity, and return on assets all favored Wells Fargo. For investors, the only advantage Bank of America offers is that it currently trades at a significant discount to book value, while Wells Fargo trades at a premium. Matt believes Bank of America has to improve its new loan portfolio and other financial metrics in order to stay competitive with Wells Fargo. 

 

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Stocks Mentioned

Bank of America Corporation Stock Quote
Bank of America Corporation
BAC
$37.02 (0.95%) $0.35
Wells Fargo & Company Stock Quote
Wells Fargo & Company
WFC
$45.89 (0.64%) $0.29

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