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 Sees 'Organic' Growth

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) CEO Brian Moynihan made repeated reference to a "peace dividend," during presentations the company made to investors Tuesday.

The peace dividend, as he explained it to CNBC's Maria Bartiromo, appears to refer to the fact that, because Bank of America has grown largely through acquisitions and will no longer be doing them for the forseeable future, the bank will now have the ability to devote resources to "organic growth."

Acquisitions such as that of Countrywide Financial, MBNA and the biggest of all, Merrill Lynch, have "caused us a lot of work," Moynihan said. But now the work is "behind us," he said, adding that Merrill Lynch is has been "completely integrated" for several months.

Investment in technology, Moynihan told Bartiromo, is "part of the peace dividend," as is "build[ing] expertise and energy," and having "time to do what we can for our customers."

While Bank of America is reaping the benefits of -- doing whatever one does with a peace dividend -- shareholders can expect fairly little in the way of a real dividend. While Moynihan indicated he aims to increase it in the second half of this year, he stressed that the increase will be relatively small for the time being.

Shareholders were apparently satisfied. They drove up Bank of America's shares 4.70% on Tuesday, well above the day's gains for Citigroup (C - Get Report), Wells Fargo (WFC - Get Report)and JPMorgan Chase (JPM - Get Report).

-- 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 $14.56 -1.56%
C $46.28 -0.96%
JPM $63.20 -0.63%
WFC $49.98 -0.85%
AAPL $93.74 -1.15%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs