A recent press report said that Bank of America has posted a reasonable profit with the help of increasing accounting gains but the business was dull because no income was generated from lending and investment.
Though the income fell the shares of the bank which was trading with 50 per cent fall since mid – January has risen because of some analysts and investors were convinced of higher than expected profit and an increase in quarterly revenue.
In a statement of Tim Ghrisky, the chief investment officer of Solaris Asset Management in Bedford Hills, New York said that in this tough quarter, the earnings especially the revenue were good.
The bank of America ceding it’s ranking as the largest US Bank by the contribution of asset to Jp Morgan chase & company.
Mr. Brian Moynihan, the chief Executive officer of Bank of America, who has made an investment of $5 Billion with warren Buffett’s Berkshire Hathaway Inc. has planned to cut down 30,000 jobs in the forthcoming years.
The bank has also faced a criticism for the decision of charging $5 per month to use debit cards. Most of the customers were not convinced with Moynihan’s decision of charging debit cards. Many shareholders also felt that the plans made by Mr. Moynihan would lead to reduction in potential sources of revenue.