Critics pile on besieged Bank of America boss.
According to the NY Post Brian Moynihan has tried just about everything to gain Wall Street’s affection -- everything short of chocolates and some flowers. It might be time for Moynihan to visit his local florist.
The chief executive of Bank of America, the bank Wall Street loves to hate, yesterday saw his company’s shares again drop to a 52-week low as investors and analysts debate whether Moynihan will need to raise capital to cover his huge toxic mortgage portfolio.
The debate raged despite Moynihan’s repeated attempts to quell shareholders uneasiness. The 51-year old chief has said more than once that BofA will not be forced to issue shares to meet upcoming more stringent capital standards.
But the Street is showing him no respect.
“Brian Moynihan has a real credibility problem,” said Paul Miller, bank analyst at FBR Capital Markets.
If so, Moynihan’s problems can be pegged to key events. In particular:
lMoynihan lost credibility when he told investors that he planned to bring back a dividend this year but was forced to retract those comments due to regulators’ concerns surrounding whether the bank had sufficient capital for the move….
Read more at http://www.nypost.com/p/news/business/moynihan_mayhem_1x7npBF0Ffjs73X1YhrsFO
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