Financial Markets News: SHOCKING BAD NEWS for THIS BANK

Bank of America (BAC) may be one of the banks we most love to hate, but we didn’t really expect to see it lose its Wall Street fans. However, at least one party is downgrading the lender’s stock and has lower hopes for the mega-bank than it has in years. BMO Capital Markets recently downgraded Bank of America shares from “outperform” to “market perform,” which might not sound that bad on the surface but indicates that BMO now considers Bank of America to be no more or less remarkable than its market peers.

BMO analysts James Fotherington said of the downgrade that Bank of America has posted “slower-than-expected capital development,” which was the main reason for the move. The change also places the lender below Citigroup, the one remaining “outperform” rating in BMO’s list of money-centered banks. JP Morgan Chase was also rated “market perform,” and BMO expects Wells Fargo to underperform[1].

Over the past week, Bank of America shares have fallen as low as $16.10, and share values have spent the last year hovering between $14.37 and $18.21 – a far cry from highs in the early 2000’s over $50. At time of publication, shares were valued at $16.45.

Do you think that Bank of America is in trouble?

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[1] http://247wallst.com/banking-finance/2015/05/06/why-bank-of-america-shares-were-downgraded/?utm_source=247WallStDailyNewsletter&utm_medium=email&utm_content=MAY72015A&utm_campaign=DailyNewsletter

About the Author (Author Profile)

Carole Ellis is editor in chief of the Bryan Ellis Investing Letter. Under Carole’s leadership, the Bryan Ellis Investing Letter has grown to over 700,000 subscribers, making it one of the largest real estate newsletters in the world. Each day, Carole directly impacts the daily thinking and conversations of real estate investors worldwide by providing thought-provoking analysis and commentary on news topics relevant to serious real estate investors.

Carole has a strong background in research and in the management of respected publications. She holds a degree in English Literature from the University of Georgia, and has substantial research experience in plant biology. She is the former editor of and writer for the University of Georgia’s Research Magazine. She’s also the author of hundreds of articles and multiple books and home study courses published under the names of her clients, many of whom are well known, highly respected real estate entrepreneurs as well.

Carole makes her home in Kennesaw, Georgia with her husband Bryan and 4 children.

Comments (2)

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  1. Alex says:

    A slight downgrade of their stock price is negligible in their earnings and the overall damage they can do, and have done to our economy at large. The fact is, by taking over Country Wide, they have become bigger, not smaller. There was a lawsuit which basically states the following:

    1. The deceptive coercive methods employed by mega-banks to facilitate injured parties’ participation in loans and mortgages
    2. The fraudulent and illegal use of MERS
    3. Breach of plaintiff’s statutory rights
    4. Purposeful violation of consumer and homeowner protect statues
    5. Processing money from unknown sources in contravention of the Patriot Act of 2001
    6. Foreclosing upon and accepting monies for assets that do not exist

    The lawsuit states that there was a “a systemic fraud on thousands of investors” concerning the mortgage-backed securities first purvey by Bear Stearns, who was later acquired by JPMorgan Chase as part of the US governmental bailout of the banks after the 2008 crash. These securities were sold, according to the lawsuit, willfully and with intent by the seller to defraud and deceive investors. Because the securities were a combination of home mortgages, credit card debt and student loans which were bundled together and sold on the global markets after given a fake triple A rating.

    Some of the mega-banks named in the lawsuit are:

    • JPMorgan Chase
    • Wells Fargo
    • Wachovia
    • Citigroup
    • US Bancorp
    • Ally Financial
    • GM Acceptance Corporation
    • One West (owned by George Soros)
    • HSBC
    • Deutsche Bank
    • PNC Bank
    • Bank of America
    • Bear Stearns

    Many foreign and overseas banks were named in the suit in conjunction with the mega-banks – pointing to the fact that financial institutions like JPMorgan Chase, Deutsche Bank, and others were using offshore banks to hide their monies acquired by the mortgage-backed securities scam. In essence, these financial institutions took monies from mortgage-holders, funneled it to offshore bank accounts and then after securitizing the loans, took the actual property from the individuals.

    The complaint states that the Ponzi scheme concocted by the banksters was “the largest scheme in US history where domestic banking institutions – on an international basis” conspired together with the common purpose of engaging in a “worldwide scheme to steal, rob and convert the personal property, money and proceeds of such assets of each Plaintiff herein” with the obvious purpose of a conspiratorial “decade-long systematic conversion . . . that damaged millions of borrowers across the US.”

  2. Texxxxxxxxxx says:

    Yes…the banks conspired to do something that would potentially put themselves out of business.

    And the towers were brought down by George Bush.

    BTW, anyone can allege ANYTHING in a lawsuit…that doesn’t make it a FACT…and that an educated person such as yourself keeps asserting these allegations as anything more than that is the real crime here…

    C’mon back from the dark side Luke.

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Category: Financial Markets