After a tumultuous day for Bank of America, a couple of analysts have shown their support for the firm.
On August 23 the bank’s share price dropped to levels not seen since 2009, $6.01, as many in the market continued to voice concern that the firm does not have enough capital to meet Basel III’s 2013 deadline.
And Meredith Whitney, a bank analyst, told Bloomberg Radio this morning:
“I don’t think that there’s a mad dash to raise capital immediately.”
“They’re going to steadily raise capital over time.”
Brian Moynihan is “the right guy for the job.”
“They’re biting into the marrow of the institution to raise capital. They’re selling some crown jewels.”
She’s referring of course to Bank of America’s big fire sale.
JPMorgan also said its analysts believe the firm has a smaller capital shortfall – $25 billion max — than other critics. The firm upgraded BofA from underweight to neutral yesterday.