Tomahawk, WI 11/19/2013 (BasicsMedia) – Bank of America Corp (NYSE:BAC), like most every bank in the U.S. today, is faced with historic low interest rates. Financial institutions like BAC have made remarkable efforts to shed off the impact that the financial crisis had on their books. Major bankers BAC, Wells Fargo, JPMorgan Chase and Goldman Sachs have fast entering the profitable zone, save for a few challenges such as declining customer count and strings of cases involving mortgages bought at the height of the financial crisis.

The issue of mortgage cases has been a painful thorn in the flesh of BAC, and JPM as well. The two financial institutions have already spent billions of dollars in legal fees and settlement cost, but they are yet to free themselves from the cases. BAC and JPM need to get over the lawsuits they are facing over botched mortgage investments so that they can concentrate on their core businesses. At the moment the institutions are facing huge financial loss and perception issues among investors.

BAC making quick rebound

It can be said that among the major banks facing cases over mortgage-backed securities which went haywire during the financial crisis, leading to loss of billions of dollars for both retail and institutional investors, Bank of America Corp (NYSE:BAC) has been doing remarkable in dealing with the cases. The bank has obliged to several compensation packages for the affected investors and it is still willing to do so that it can get out of their mud as fast as possible.

While handling its case over poorly packaged mortgage securities – which it sold to investors including American International Group (AIG) – Bank of America Corp (NYSE:BAC) has been boosting its customer number both retail and institutional. The bank is also in the process of improving its promising wealth management unit. This unit has seen increased focus from BAC management as several decorated wealth managers have been hired to ensure that the dream in turning it the banks top revenue earner is attained in the near term.

BAC doing well even in the low interest rates environment

Most everyone knows that banks are grapingly with painfully low interest rates on the loans they process. This low interest rate environment has significantly reduced the profit margin of banks including Bank of America Corp (NYSE:BAC). However, the good thing is that even in this low interest rate condition, BAC is still able to make profits for its investors. So what does this mean for BAC? First, given the interest rates are at their historic lows, it’s only natural that the next movement will be upwards. As rates rise, Bank of America Corp (NYSE:BAC) will be having its profit margins boosted and this means massive gains.

Diversification is a blessing business model for BAC

Like most major banks, Bank of America Corp (NYSE:BAC) has diversified business which means that when interest rates stabilize, the bank would be having numerous sources to feed its revenue basket and take its profits higher. That the bank is growing its customer base validates its good standing to reap in the high interest rates environment. It therefore goes without saying that the future is bright for BAC whose market cap is over $159 billion.

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