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Breakingviews: BofA still lagging behind

Wednesday, Jul 17, 2013 - 03:05

July 17 - Rob Cox and Breakingviews columnists discuss why despite Bank of America’s solid second-quarter results, it still has much more work to do.

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The latest from Wall Street earnings calendar we've got Bank of America has come out -- their second quarter results today. Four billion dollars looks okay except when you compare it to everybody else on Wall Street. Agnes that's your contention today these guys the laggards of the losers. -- hit it well Heidi Collins we'll get me looking back it just looking at that some of their. Forget about the city and Marcella that have really suffered since the crisis -- look at that and look at things like book value look at their share price this year -- -- -- I'm an equity return on equity. Exactly -- still low and he just even look at the share price as a percentage of book value is still -- across the argument that BankAmerica make as we look how bad it was when when you know couple years ago. That double dip for TARP money emphasized that it. So -- city of course which had its results earlier in the exact and they did far better so yes. I -- and they're doing better at their planning one of the big things I think back America still has -- is this that this legal fees legal issues right they still haven't been able to kind of like. Put a cap on that we're still waiting for land settlement are that he's no mortgage mainly. It's what it's all clear who exactly is a countrywide they've also has some problems with the Merrill Lynch football they've bought. So again I mean they're they still have to deal of thought and that's pretty unique to Bank of America but I mean again at the longer term you're looking at they have -- -- deposit. In that defense be of a soft they're restructuring later in 2000 certainly -- go ahead. BofA was still riding high going out trying to get -- of countrywide it also is good deal of time. And it makes a dynamic changer yet many site -- getting an incident obstruction in 2001 by which time Vikram Pandit -- coming in and out of a fair bit to -- process. And into the results that you you see some evidence of that the changes that can -- such. It David total expense cuts in the city's expense cuts will be looking through. But it's expense but cuts of -- they help their earnings up there it is trading is great. Compared to some of the other. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- I think pretty patient and it's just you know I had the pleasure in what what is the return on equity in the -- -- -- -- -- my. So waited so are you gonna argue for breakup. Well I mean it and we I think that's price action for other how -- -- Certainly answered no -- -- I look at it we're gonna look at their kept their comparative results yet. And and try to understand it it is is Brian morning and good to be under pressure as a result of your story or just these -- I'm sure he's constantly under pressure because I mean this is what he means but off and answered he was dealt a terrible hand as a question of time. Would someone new coming in today -- so can you speed up expense cuts whether -- and pretty quick yeah. Can you speed up -- legal settlement we unless she's settle and pay the money then no you can't -- What are in it that there's not a great deal someone you can come -- -- -- -- aren't. Okay we'll be back and more breaking views tomorrow.

Breakingviews: BofA still lagging behind

Wednesday, Jul 17, 2013 - 03:05

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