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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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NYSE: BAC

Bank of America Corporation

Market Cap

$295B

Today's Change

(0.95%) $0.35

Current Price

$37.02

Price as of May 27, 2022, 4:00 p.m. ET

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.

Stocks Mentioned

Bank of America Corporation

BAC

$37.02 (0.95%) $0.35

Wells Fargo & Company

WFC

$45.89 (0.64%) $0.29

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

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