NEW YORK (TheStreet) -- Bank of America (BAC) fell Wednesday after McKinsey & Company reported large dealers could face $2.5 billion to $4.5 billion in losses from the $13 billion in revenue generated last year from large global interest rates markets.
New reforms are changing the U.S. swaps market, and McKinsey said global dealers must offer a quick answer as they face the major revenue decline. The reforms to U.S. derivatives arrive just as global dealers face pressure from low volatility and decreasing volumes, which have led to a significant decline in their fixed income, currency and commodity, or FICC, revenue.
The stock was down 0.84% to $15.36 at 10:43 a.m.
Separately, 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 a few notable strengths, 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."