The Finance Owl

Banks – Loans – Mortgages – Money

How is Bank of America Doing?

Posted by theaccountant August - 6 - 2009 - Thursday

Bank of AmericaBank of America, one of the goliaths of the banking world, has continued to have a struggling share price in 2009.

Bank of America (BofA) is famous for offering consumers a multitude of financial products, such as BoA mortgages, but during the last twelve months there is likely to have been a significant portion of the bank’s financial brainpower focused on how to keep it afloat and financially liquid.

The banking crisis, which resulted from the collapse of the sub-prime and thus the mortgage market, has certainly taken its toll on the Bank of America. The share price, like the US banking market in general, has dipped significantly from its relatively recent highs. The last twelve months have remained painful with, despite recent rallies, the share price being not significantly different from that at the end of December 2008.

For now it appears that the Bank of America is continuing to struggle on like the vast majority of the banking industry.

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10 Responses to “How is Bank of America Doing?”

  1. Florida Adjuster says:

    I think Greenspan is getting senile, today he said that you can stop asset bubbles by increasing capital requirements. That just increases the cost of credit. The next time you have a real estate bubble, you’ll have the same problem, assuming that banks are still in the business of loaning against real estate. If you want to stop this problem, then eliminate the federal subsidies for real estate development and investment, then require people in that industry to put their own money at risk instead of someone elses. If Greenspan really wants to change the banking system, though, then simply ban 95% and 90% LTV loans. Require a bigger equity cushion. BTW, the “too big to fail” argument is a fallacious one. During the Great Depression, Canada had no bank failures. The reason was that their banks were very large. The banks closed branches, etc., but none of them failed. By contrast, the US was dominated by thousands of very small banks, and we had more than 10,000 of them fail. So there is nothing inherently unsafe about a banking system dominated by large banks. The real problem with large banks is that during good times, they don’t provide enough competition for each other.

  2. Loan and Credit Repair says:

    I had a Care Credit Card. Near the end of the promotional period I applied for a different card with a low balance transfer apr, and transfered the balance to avoid the 29.99% apr on the expensive emergency that this card was supposed to help me through. As a result of trying to keep up with the promotional offer, I really put myself in a hole with cash flow.