No. of Recommendations: 1
in Barrons,
" Bank of America may also need to build credibility with shareholders after it was fined by the U.S. Treasury for allegedly violating anti-money-laundering laws. How are investors viewing the stock and CEO Brian Moynihan?
Investor sentiment is colored by the fact that the stock has underperformed so materially. Bank of America is up 7% over the past five years, while other [U.S. systemically important banks] are up 75% to 150%. That’s the report card investors care about.
The discussion about Brian [Moynihan’s tenure] is evolving naturally. You heard another analyst ask about his succession plans on the latest earnings call. Brian just turned 67. He is only three years younger than Jamie [Dimon]. There have been succession discussions about JPMorgan for a decade. While Brian named his bench last year in theory, investors don’t know the Bank of America bench as well as they know JPMorgan’s. Analysts want to understand the next steps at Bank of America in terms of succession.
Deregulation has been a tailwind for the banks in President Donald Trump’s second term. With the midterms approaching, how would Democratic control of one or both chambers of Congress impact the industry?"