A Secure Bank of America
With all the troubles in the banking industry, a little bit of good news is always refreshing. Rich Dansereau, one of the co-founders of PREP, wrote the following article on one of his outside blogs. If you have not had the opportunity to read the article as of yet, then please take a minute to read over it.
Bank of America is one of the largest banks in America and to know that it is secure and solvent is a big plus.
Via Rich Dansereau of Rich Talks Real Estate:
With a title like that I know many of you may be saying either yeah whatever or who cares. We should all care to some extent as Bank of America can be used as a good indicator of the overall health of the American and global economy. As one of the largest banks in America, this behemoth institution is the repository of many American’s personal wealth.
As such, it was able to withstand the absorption of Countrywide Financial Corporation and Merrill Lynch. It is true that the Merrill Lynch deal made the Bank of America position very unstable for a short amount of time. This instability was corrected thanks in large measure to a variety of factors including U.S. government aid (TARP), eliminating 35,000 duplicate jobs because of the Merrill Lynch acquisition, and firing of Merrill Lynch CEO John Thain.
In an interview with CNBC, Bank of America CEO Kenneth Lewis rejected the notion that Bank of America would be nationalized. He asserted that not only is Bank of America rebounding from its nearly 50% slump but that the bank would not seek anymore assistance from the government. Some analysts are now recommending Bank of America stock as a strong buy which should increase the stock’s value and further quash nationalization rumors.
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