NEW YORK (TheStreet) -- Shares of Bank of America Corp. (BAC) are lower in pre-market trade after it was reported that U.S. prosecutors are seeking more than $13 billion from the bank to resolve federal and state investigations of the lender's sale of bonds backed by home loans in the run-up to the 2008 financial crisis, sources told Bloomberg.
That settlement would be in addition to the $9.5 billion the bank agreed lato pay last month to resolve Federal Housing Finance Agency claims, sources said, adding that a deal could come within the next two months.
TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: