Monday, April 28, 2014

How Bank of America botched its dividend and capital plan

This is an article to further understand how Bank of America got into the situation that it is now.


  1. I'm sure my knowledge regarding mark-to-market accounting is very limited. I'm sure the method has its merits, but I cannot see how this method persists as it seems to only breed error. I am largely basing that assessment on Enron's practices and this article. The author makes it seem the BofA was putting forth wrong numbers unwittingly but could this just be another byproduct of the alleged proclivity of bankers to fudge their numbers?

  2. Can anyone explain to me what structured note is? Every time I read something about a banking crisis situation, a complex derivative is included. Here is some more on the structured note that was used by BoFA.