A Valuable Insight From Bank of America CEO Brian Moynihan
Large banks like Bank of America (NYSE: BAC) are such complicated entities that it can seem all but impossible for an outside investor to understand them enough to make a rational investment decision.
The Charlotte, North Carolina-based bank is huge. It currently has $2.3 trillion worth of assets on its balance sheet, ranging from loans and securities to intangible assets like mortgage-servicing rights and goodwill.
On top of this, as a universal bank, Bank of America has both commercial and investment banking operations. Within each of these are a multitude of business lines that operate according to different cycles. For instance, some of them benefit when interest rates rise, while others actually lose value.
Source: Fool.com