This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America Readies for Investor Day

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) will try to focus on the future as it meets with investors in New York Tuesday.

Bank of America had a difficult 2010, as Brian Moynihan took over for embattled former CEO Ken Lewis, and the bank faced tough questions and the threat of fines and other penalties from Congress, the courts and then--New York Attorney General Andrew Cuomo, now the governor of New York, over its merger with Merrill Lynch.

Speculation is increasing on what the bank will focus on during the discussion. Chief executive Moynihan and other top bank executives will tell investors what to expect going forward in terms of credit losses and returns on tangible equity, according to a report by Bloomberg News Monday.

A bank spokesman declined to comment on the report.

Just as that furor appeared to be subsiding, Bank of America got in trouble over sloppy paperwork and poor mortgage underwriting related to loans made by Countrywide Financial, which the bank acquired in 2008. The bank also appeared to face risks of a big disclosure from WikiLeaks, though that may have proven to be a false alarm.

Mortgage-related liabilities remain the biggest issue for Bank of America. The bank settled disputes over mortgage-backed securities with Fannie Mae (FNMA.OB)and Freddie Mac (FMCC.OB) for some $3 billion, and has said exposure to private investors in MBS could reach $7 billion to $10 billion. Meanwhile, legal bills, most of which stem from the mortgage issues, keep growing.

These problems explain why Bank of America was the cheapest large bank stock in the U.S. as recently as a month ago, and why many sell-side analysts recommend it. Bank of America shares underperformed rivals like Citigroup (C), Wells Fargo (WFC) and JPMorgan Chase (JPM) by a wide margin in 2010, but have performed more respectably so far in 2011.

Still, there are plenty of unresolved issues, particularly on the mortgage front. That bank's struggles in that arena offer a window onto many other U.S. companies whose fortunes depend on a U.S. housing rebound.

Those issues--plus the potential big gains for investors if the bank can put them in the rearview mirror--will make Bank of America's meeting Tuesday a big focus for financial sector investors and analysts.

-- Written by Dan Freed in New York.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.77 0.00%
AAPL $93.64 0.00%
FB $118.57 0.00%
GOOG $698.21 0.00%
TSLA $241.80 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs