What You May Be Missing About Bank of America

Updated

After the financial crisis, when interest rates plummeted to record lows, banks benefited enormously because the cost of funding (short-term rates) dropped substantially. However, things have changed. Net interest margins are compressing, and bank CEOs are praying for a steeper yield curve.

Bank of America CEO Brian Moynihan recently said, "the interest rate risk is all upside." In this video, Motley Fool banking analysts David Hanson and Matt Koppenheffer discuss the banking environment and tell investors when banks will start to benefit.

Is the legal monkey off B of A's back, or is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analyst Anand Chokkavelu, CFA, joins Matt to lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.


The article What You May Be Missing About Bank of America originally appeared on Fool.com.

David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. You can follow David and Matt on Twitter. The Motley Fool recommends Wells Fargo and owns shares of Bank of America and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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