One ongoing complaint that the Fed has registered against lenders is that they are entirely too optimistic. Federal Reserve officials and analysts must be loving Bank of America (BAC) right now, because in a recent loss estimate everyone’s favorite bank predicted that it would record a cumulative net trading loss of $19.7 billion between Q4 2012 and Q4 214. The Fed, on the other hand, predicted “only” $14.1 billion in losses[1].

Bank of America has continued to struggle in 2013 as it attempted to pay off rising debts incurred by mortgage fraud settlements and faced accusations that it was slacking on homeowner-help programs including the Home Affordable roster of aid. At time of publication, the lender was trading down slightly at $12.07 after hitting $12.31 (just 13 cents lower than its 52-week high) late last week[2]. The Fed announced that Bank of America did pass its most recent “stress tests,” meaning that Fed analysts believe that the lender would have enough capital “to keep lending if the economy were to sour again”[3].

Would you buy Bank of America stock right now?


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