Is Bank of America too big to fail?
The short answer is yes. Nevertheless, we need banks with the size and scale of Bank of America today. Bank of America is currently on a path to success. Furthermore, the bank is still vastly undervalued on a relative and historical basis.
Bank of America is in the midst of effectively executing the end of a long-term turnaround program. By increasing revenues and cutting costs, Bank of America is increasing earnings per share year over year. Keep in mind this has all occurred in an extremely low interest rate environment. If this trend continues, it should pave the way higher for the stock. With the bank’s legal woes solidly in the rear view mirror and interest rates on the rise, I posit the inflection point in the stock is upon us.