Then why is BAC's stock price dropping drastically? There are massive lawsuit claims against BAC that could bankrupt to the point JPM would take BAC over, just like WA Mutual. BAC has the worst reputation in banking and losing customers like crazy. Ever look at the list of instruments that BAC has to pay every month? Is huge! Merrill and CountryWide are huge drags on BAC. Hey, read this article about a Seattle foreclosure mess: http://westseattleblog.com/2011/08/video-vera-johnson-awaits-her-answer-after-bank-of-america-meeting
This reply is not really about the strength or weakness of BAC instruments and securities in investments.
Rather, it is about the sadness of the statement "BAC has the worst reputation in banking." I might wonder if it is worth than Citi, which I sometimes spell with an "Sh," but even if it isn't, it is truly sad that it has come to this.
(1) Growing up as a kid in California in the 1950s, the "old" B of A (before being acquired by Nationsbank in Charlotte several decades later) inspired trust and respect, but was still willing to work with the masses. (2) As an adult in Wichita in the 1990s, when Nationsbank (to become BAC) bought out our proud, homegrown Bank IV/Fourth National Bank, we were told constantly by observers that the Charlotte folks did things right, they weren't always the cheapest, but they were high-quality, and Wichita should be happy they were buying Bank IV. (3) In the collapse of 2008, I truly, truly wanted to believe that Mr. Kenneth Lewis was saving the world from a Great Depression by buying, and straightening out, both (a) Countrywide and (b) Merrill Lynch, Pierce, Fenner and Smith (and I still believe his heart was in the right place).
So with all those backgrounds, now we're kicking around phrases like "worst reputation in banking." How sad.