Did Bank of America Just Prove Everyone Right?

Does Bank of America's latest mistake prove that no one can understand banks.

David Hanson
David Hanson and Matt Koppenheffer
Apr 29, 2014 at 12:34PM

Many investors believe it's impossible to understand and value a bank like Bank of America. When Bank of America disclosed on Monday that it had found an error in its internal accounting practices, the argument of the bank being a "black box" seemingly grew stronger.

In the following episode of Where the Money Is, banking analysts Matt Koppenheffer and David Hanson bust the myth that says investors should "sell in May and go away," dive into Bank of America's latest issue, and try to stump each other's investing knowledge in a round of "Stock Quiz." Matt believes the mistake at Bank of America says as much about the Federal Reserve and its stress testing methods as it does about Bank of America's inability to correct account for its assets and liabilities. Is the latest mistake a reason for banking "bulls" to finally admit that banks are too complex to be winning investments?