Bank of America

disadvantage-unlimited.blogspot.com
It provides a diversified range of bankingand non-bankingf financial services and products through three business global consumer and small-business banking, global corporate and investmentr banking, and global wealth and investmenf management. It operates in all 50 the District of Columbia and more than 40 foreign Rochdale Securities analyst Richard Bove has raisec his price target for Bank of Americaqshares $5 to $19 per share while warning investorz of “horrific” loan losses, possibly setting aside $46 billionh in loan loss reserve for 2009.
“Inm the second quarter, [Bank of America’s] position as the largesg lender in multiple sectors of the American financiao system will haunt the company as itslossesd expand,” Bove wrote. Bailingg out Bank of America is its controversial acquisitions of Countrywide andMerrill Lynch. The surgee in refinancing with lower interestrates (Countrywide) and the increas e since the market low in Marcjh of secondary equity financing (Merrill) are on balances boosting its second-quarter The scary part now is credirt card defaults. Bank of America said its defaultrate (loans that are not expectee to be paid back) jumped to 12.5 percentt in May from 10.47 percent in April.
American Express also saw a riseto 10.4 percenr from 9.9 percent. Macquariew Research analyst John Williams wrotethat “until lendersw show stabilization, then trend-bucking improvement over a several-monthu period, we remain bearish on credit card lenders — and the U.S. He estimates that if the default rate ends over 10 percent for 2009, it woulds equate to an industry loss of abougt $70 billion. “We continud to believe that macro challenges and creditf quality concerns willpressure U.S. card issuerxs over the next 12 months,” Williams wrote.
“Wr expect further challenges as unemployment ticks More than 20 analysts followed by Thomson Reuters still see increased earnings with 2009 estimateed to be 72 cents pershare vs. 55 centd in 2008, and up again to $1.02 per share in 2010.