NEW YORK (TheStreet) -- Shares of Bank of America (BAC) closed Friday at $15.45.
There is a major concern floating that has investors wiping the sweat off of their foreheads. They're worried that the Justice Department will fine the company, and Bank of America will have to pay at least $12 billion.
This fine of $12 billion would be greater than BofA's 2013 net profit. That profit was the largest the company has seen in six years. Many estimates have shown that $5 billion of the $12 billion will go toward helping consumers who have suffered from toxic mortgages.
Chief executive officer Brian Moynihan commented at the first-quarter 2014 earnings conference, "The cost of resolving more of our mortgage issues hurt our earnings this quarter."
He added, "But the earnings power of our business and customer strategy generated solid results, and we continued to return excess capital to our shareholders."
Back on April 28, BofA shares plummeted nearly 6% after the company announced that it had not correctly disclosed calculations of its regulatory capital; BofA currently manages $2.2 trillion in assets.
One of its units, Merrill Edge, has consistently reported increases in brokerage assets, which is a good indicator for future growth.
Fundamentally, Bank of America is doing great, with a price-to-earnings ratio of 20.06 and beta of 2.0. It is right in between its 52-week high and low of $18.03 and $12.13. This may be the perfect chance to buy the company, although shares have not skyrocketed. Investors are still looking for a market pullback.