Tomahawk, WI 03/24/2014 (Basicsmedia) – Financial firms have risen like a Phoenix from the depths of the financial crisis of 2008 and Bank of America Corp (NYSE:BAC) is no exception. BAC shares have been on an upswing since 2013.

Some Bad News

It has spent upwards of $50.0 billion in litigation expenses but considering its asset base in excess of $2 trillion, the bank can take that humungous litigation bill in its stride. The legal troubles are mostly over except the recent news of an investigation by the U.S. Attorney’s Office for the Eastern District of New York in Brooklyn into whether BAC may have violated the rules regarding the Federal Housing Administration’s Direct Endorsement Program. The other bit of bad news relates to the Federal Deposit Insurance Corp (FDIC) suing 16 banks including BAC for illegally manipulating and fixing the key Libor rate.

Mostly Good News

The news is mostly good. Like its other counterparts in the banking industry — Citigroup Inc (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC) —BAC passed the Dodd-Frank stress tests conducted by the Fed with flying colors. This means that all these banking institutions (29 out of 30 in all) will be able to meet their obligations under hypothetical adverse business conditions such as a recession in the U.S., Europe, and Japan. The success in the stress test might lead to higher dividend payments to shareholders.

With the Fed likely to reduce its monthly bond purchases — likely in $10 billion increments — interest rates are likely to increase which will add to the banks’ balance sheet.

Bank of America Corp (NYSE:BAC) has closed branches and cut jobs including in the global trading and investment units most recently. It also has a strong online presence with a website that has 30 million active users and 14 million customers who visit the website from mobile devices.

Its ‘Safe Balance’ initiative will ensure that most of its existing customers will continue to bank with Bank of America Corp (NYSE:BAC) and the monthly fee of $4.95 will add up to a tidy source of consistent long-term revenue.

This stock is a long-term “buy”.

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