Brian T. Moynihan, who vowed that Bank of America Corp. (BAC)’s strength would never be questioned again when he took the top job, found himself bombarded with queries yesterday about whether the bank needs to raise more capital, Bloomberg reports.
The answer is no, Moynihan told analysts during a conference call after reporting an $8.83 billion loss at the bank where he’s chief executive officer. On a day when stock markets rallied and rival Wells Fargo & Co. (WFC) posted its biggest gain since last year, Bank of America slumped 1.5 percent as falling revenue fed doubt among analysts.
“Nobody believes their theory that they don’t need to raise capital,” said Michael Shemi, a director at Christofferson, Robb & Co., a New York-based firm with $1.4 billion in assets that invests in credit markets. “There’s clearly a credibility gap with management. If you were to listen to their end-of-2010 earnings call, the sentiment was around the dividend and returning money to shareholders. All that’s gone out the window……”
Find out the rest at http://www.bloomberg.com/news/2011-07-19/bank-of-america-s-chief-pressured-by-analysts-on-capital-after-record-loss.html
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