Few things to note in connection with B of A:
1. B of A is listed among 8 banks under the umbrella term "SIFI" or "Systemically Important Financial Institution". In addition to banks SIFI also includes insurance companies and financial market infrastructure providers deemed systemically important by regulators.
There is one official global list of systemically important banks (G-SIBs). In addition, there are various national lists of systemically important banks, referred to by regulators as domestic systemically important banks (D-SIBs) - also known in Europe as national SIFIs. Special lists of regional systemically important banks (R-SIBs) also exist, but are more rare, in particular at the regulatory context.
As a regulatory response to the revealed vulnerability of the banking sector in the Financial crisis of 2007–08, and attempting to come up with a solution to solve the too big to fail interdependence between G-SIBs and the economy of sovereign states, the Financial Stability Board (FSB) started to develop a method to identify G-SIBs (to whom a set of stricter requirements would apply) in 2009. The first publication of some leaked unofficial G-SIB lists, during a time when the FSB identification method was still being tested and subject for subsequent adjustments, took place in November 2009 and November 2010. The first official version of the G-SIB list was published by FSB in November 2011, and has ever since been updated each year in November.
All G-SIBs and D-SIBs with headquarters in USA and Europe, are required each year to submit an updated emergency Resolution Plan to their Financial Supervision Authority. Basel III also requires that all identified G-SIBs no later than March 2018, shall operate with a minimum total capital adequacy ratio comprising:
Max. 2% Tier 2 capital (Subordinated capital).
Max. 1.5% Additional Tier 1 capital (Hybrid capital, i.e. Contingent Convertibles aka CoCos).
Min. 8.0%/8.5%/9.0%/9.5%/10.5% high quality Tier 1 capital (Common Equity Tier 1 capital).*
2. S&P Capital IQ Ranking of B of A is 4 Stars (Buy) at this time. IMO it represents an interesting ST speculative trading opportunity for skilled traders and appears a good candidate for LT investors.
3. The LMP Indicator, based on larger market market internals, last week gave positive signals for the ST (refer to my posts #17854 and #17865 for further details) and this happens to be good news, imo, to the pps of many listed stocks (except for stocks facing their own specific challenges) on the exchanges, in general. GLTA
