The Bank of America is not leveraging its assets effectively at present, and this is something that makes it a relatively unattractive investment. In addition, the Bank of America may not be in a position to take advantage of an upswing in the U.S. economy, because the retail housing market is still depressed and the Bank is likely gun-shy about building back its mortgage business. The bank has probably expended much of its political capital as well by letting down that stakeholder group. There is not much cause for optimism therefore I would not invest in Bank of America at present, despite the low stock price.
Works Cited;
Alden, W. (2010). Bank of America promises to meet bailout requirement, but challenges remains. Huffington Post. Retrieved May 31, 2011 from http://www.huffingtonpost.com/2010/12/06/bank-of-america-bailout_n_792438.html
In possession of the author.
Blodget, H. (2009). 75% of latest Bank of America bailout used to pay Merrill Lynch bonuses. Business Insider. Retrieved May 31, 2011 from http://www.businessinsider.com/2009/1/75-of-latest-bank-of-america-bailout-paid-merrill-lynch-bonuses-bac
CBO. (2011). CBO's economic projections for calendar years 2010 to 2021. Congressional Budget Office. Retrieved May 31, 2011 from http://www.cbo.gov/ftpdocs/120xx/doc12039/EconomicTables%5B1%5D.pdf
Google Docs. (2011). Top 50 banks in the world by assets. Google Docs. Retrieved May 31, 2011 from https://spreadsheets.google.com/pub?key=phNtm3LmDZEOoyu8eDzdSXw
MSN Moneycentral: Bank of America (2011). Retrieved May 31, 2011 from http://moneycentral.msn.com/investor/charts/chartdl.aspx?symbol=U.S.:BAC&CP=0&PT=10
