BAC CEO Brian Moynihan Has Mis-Managed The Bank's Balance Sheet
I would not be excited if I were a Bank of America (BAC) shareholder. Unrealized losses ballooned from ($89 Billion) to ($112 Billion) from the September quarter to the December quarter as yields rose.
BAC CEO Brian Moynihan has stubbornly refused to deal with the mortgage securities that BAC gorged on when yields were low in 2020 and 2021. The other large banks did not gorge on mortgage securities, and have rid themselves of those low-yielding mortgage securities issued in 2020 and 2021 in exchange for higher-yielding securities. BAC has suffered enormous opportunity cost as a result. That’s why I refer to Moynihan as BAC’s $100 Billion Loss Man.
