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Has Bank of America hit bottom?

http://money.msn.com/top-stocks/post.aspx?post=5576f6ce-3a6b-4a33-85be-dbb73d5e6aa0

The troubled financial institution is slowly crawling out of the hole it dug for itself.
By Jonathan Berr on Mon, Dec 26, 2011 1:29 PM

Everything that could go wrong for Bank of America (BAC +2.38%) in 2011 did go wrong. Signs are emerging, however, that this dog may see better days in 2012.
According to Reuters, the Charlotte, N.C. company is considering unloading additional assets to comply with new capital rules. That's not surprising, given that the company has been selling everything $50 billion since 2010 that wasn't nailed down, including its stake in the largest Pizza Hut franchisee and the China Construction Bank.
Regulators "are trying to have us have more capital, more liquidity, so in a time of crisis, we can be there to support the economy and not have to shrink and retrench," CEO Brian Moynihan recently told the Boston Globe. "We’re all for that."

As if he has any choice.

Bank of America is lagging competitors in efforts to comply with the Basel III rules that go into effect in 2019. As Reuters notes, most large banks expect to comply with the standards sooner than that, which will only intensify the pressure on Moynihan. Compliance could cost as much as $45 billion, said an analyst quoted by the news service.
That means Bank of America will need to sell more assets including some, if not all, of what it acquired from Merrill Lynch in 2009 for $50 billion, a buy the Wall Street Journal dubbed "a deal from hell."

Bank of America, though still troubled, is scratching its way out of the hole it dug for itself. The company recently agreed to a $335 million settlement with the U.S. Department of Justice over charges of discrimination at its Countrywide mortgage business. The company will save money through its planned layoffs of 30,000 over the next decade. As it disposes of assets under its Project New BAC, that level of layoffs may not be necessary.

Wall Street analysts have not lost all hope in the stock either. Their average price target is $9.60, well above the $5.60 where it recently traded.

Warren Buffett, history's greatest investor, invested $5 billion in the bank this summer. Though Buffett's investment is underwater, Buffett can demand payment at any time and is guaranteed a 5% premium. Buffett has made his fortune is finding value in stocks that other people miss.