Will Earnings Push Bank of America Corp (BAC) to Multiyear Highs?

Moreover, legal problems for B of A continue to arise. Last month, B of A drew attention for a lawsuit alleging that the bank deliberately obstructed customers’ attempts to modify their mortgage loans under the federal government’s Home Affordable Modification Program. Although other banks have allegedly used similar tactics, and although B of A says the employees who blew the whistle on the bank’s behavior gave testimony that was “rife with factual inaccuracies,” the episode only emphasizes the general public’s ill will toward the bank.

In Bank of America Corp (NYSE:BAC)’s earnings report, be sure to look at the unrealized losses in the bank’s investment securities portfolio resulting from the rise in interest rates during the quarter. With rates having risen from such low levels, it’s unlikely that the bank will earn those losses back, and that could pressure earnings for a while to come.

The article Will Earnings Push Bank of America to Multiyear Highs? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns warrants on Bank of America, Wells Fargo, and JPMorgan Chase (NYSE:JPM). You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

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