It has been 8 years since the financial crisis and BAC is struggling to produce a reasonable return on equity (it has the lowest return in industry). It's just a poorly managed bank - on 1Q15 CC, the top three executives came across as unknowledgeable and their rambling answers just show BAC is in trouble.
1. Given so many new regulations, the old margins are not coming back, so why BAC is so slow to reduce costs? What they have done so far to cut costs is TOTALLY INADEQUATE. What are they waiting for?
2. BAC is too big, as is evident from CC responses - why not restructure and get rid of units that have very little growth prospects? Again, what are they waiting for?
3. After the illegal activities related to mortgage-based securities, they keep committing new crimes (currency manipulation, interest rate manipulation, commodity trading,....) - a billion here and billion there, it just adds up at the expense of lower stock price (shareholders). Moynihan has failed to change the culture - it's funny, he is a lawyer (so we can excuse him if he doesn't understand banking business and he has no strategic vision) so he should know engaging in criminal activities is no way to grow business.
BoD is one of the worst - BAC needs a new CEO, CFO, COO and new Board members fast!
On CC, during Q&A, their responses showed lack of good understanding of banking business. Moynihan is not the right person to lead BAC. Even Board of Directors is inept and needs to be revamped. The sooner they replace the top team, the better it would be. Moynihan is a lawyer, he doesn't have banking training or experience to be able to manage BAC well.
Most big banks trading near 52-week high except BAC, so you can't say that nothing is wrong with BAC. In 1Q15, JPM, GS, WFC, C all reported better than expected results and they all set new highs earlier in the week. BAC is the only stock which has not set a new high since it did a long time ago at $18.20. BAC's return on equity is the lowest in the industry. It's just a badly managed bank with a lousy Board of Directors who have lost sense of time - we are 8 years past the financial meltdown and still way below the stock price that existed before the financial crisis
BAC is clearly not managed well. Moynihan should be replaced.
Eight years after the financial crisis, BAC still way below the high set before the crisis. BAC needs to:
1. Cut costs more - the old margins are not coming back, so need to cut costs more aggressively.
2. BAC is so big, it's hard to manage effectively. Need to do strategic restructuring by getting rid of small units that don't have growth potential.
3. Cut pay throughout the bank - those making more than $100,000 should take a10% cut in pay and bonus.
For 2015 so far, based on 3/20 closing prices, DJIA is up over 1.7% and BAC is down over 11% (2014 Dec closing price was 17.89). Are you having problems with your math?