Just as the economic disparity between the haves and the have-nots is rising in the United States, so too is the profitability gap within the banking industry. And this morning, Bank of America (BAC) provided a great example of just how quickly a bank can go from “have” to “have not.” Just last year, the company’s first quarter profit was $1.48 billion, or 10 cents a share profit. BAC’s loss for the just-completed first quarter was $276 million, or 5 cents a share. BAC’s struggles began seriously about five years ago, with its acquisition of Countrywide Financial Corp and that bank’s portfolio of bad mortgages. If you’ve been considering taking the plunge into U.S. financials, you may want to consider players like Wells Fargo & Co. (WFC), the nation’s #1 home lending institution (up 14 percent in Q1), or Citigroup, Inc. (C), up 3.5 percent year-to-date.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
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Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: