Bank of America: the graphics tell the story

This, bold contrasty design sets the tone of the article, that Bank of America, with $2.3 trillion in assets is big: in the eyes of the government, too big to fail.

Warren Buffet’s recent purchase of $5 billion in preferred stock immediately helped the Bank’s share price that has dropped from $13.34 a share in January to $7.48 in early September.

However the sharp upturn in the share price following Buffet’s investment took an equally sharp downturn the next day—graphically illustrated on the right side of the chart on the second spread.

The article in Bloomberg Business Week concludes:

Barnes ticks off the latest statistics from Lender Processing Services, a major home loan servicer: 4.1 million loans nationwide are 90 days or more days delinquent or in foreclosure; delinquency rates are twice their historical average; more than 40 percent of 90-days-plus delinquent loans have not made a payment in more than a year.

BofA is more exposed to those scary figures than any other bank. Moynihan “has got to know there are more losses ahead, enough to kill a bank,” says Barnes. “No model exists for what happens next.”

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