Tomahawk, WI 11/13/2013 (BasicsMedia) – Last week the Obama administration appointed a Bank of America Corp. (NYSE:BAC) executive to a senior Commerce Department position. That executive is Stefan Selig, a top BAC executive manning the global corporate and investment division of the bank. If the Senate okays his appointment, he will be the under secretary for international trade.

Presently Fed and BAC are locked up in multi-million lawsuits following the bank’s mortgage dealings. So following the wide media focus on the legal troubles facing BAC, one of the leading banks in the U.S., the market failed to capture the potential ascension to a position of significance in Washington for the bank’s leading international merger and deals leader.

The appointment of Selig to a senior Fed position has nothing to do with the ongoing petition to compel the bank to pay $864 million in fines over bungled housing loans. However, it is of great significance to the bank and its investors. Chiefly, that Fed has reached out to BAC for a top banker reveals a departure from the White House norm where financial advisors or officials in Washington have always been picked from such banks as Goldman Sachs. So could White House be sending some message that calls for deciphering?

Something else in Selig’s appointment is that even as the bank continues to hop from one legal case to other over bad loans that it transacted, Fed seems to have faith in the bank’s talents. So investors can also have that big confidence that the bank will soon be able to rise above the murky waters it’s presently in.

In Washington, Selig will help in improving the competiveness of the U.S. industries with efforts to improve exports and create jobs. And his appointment comes just after some sort of lobby to have White House include more business executives and financiers to its ranks. Presently, people of such caliber are few and far between in Washington.

As a merger and acquisition guru, Selig has helped BAC transact high profile deals plus a slot of IPOs for several real estate firms. His wealth of experience in this line is just tremendous. So can it be said that BAC will be losing one of its core pillars from the executive arm? Maybe, considering that the bank requires to navigate quite tricky water without hurting its business performance or investor confidence.

In the grinding lawsuits, the bank is faced with loss of finances in settlements and legal fee. It’s also facing possible reputation damage. All these are critical for the bank that is among the largest global bankers today. So far the bank has spent well over $6 million in five years to-date in connection to lawsuit settlements. It’s planning to spend more as the cases grow. This also explains why the banks stated that it would be boosting its cash reserve to replenish what has been lost so far in legal suits. This means that earnings in the coming quarters might be significantly affected as the bank’s coffer is continually raided for high profile settlements and legal fees to lawyers.

While loss of funds can be easily recovered once the cases are over, the bank’s reputation at stake means a lot to its future. It’s this reputation that it seeks to salvage before it’s too late. Whether it successful manages to do this still a mystery to outsiders, but what is quite clear is that the appointment of Selig to such high profile position in Fed is a positive image boost.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.