Bank of America: Could it fail and start another financial crisis?

Commentary about business and finance.
Aug. 24 2011 6:56 PM

Breaking the Bank

Bank of America: Could it fail and start another financial crisis?

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It is not just Bank of America that Wall Street is getting bearish on. Wall Street is getting bearish on itself. Analysts have slashed profit estimates for retail and investment banks. And share prices have stumbled for many of them as well. Indeed, indices of banking stocks have fallen twice as much as the broader stock market. So worry about Bank of America—which, if it is not facing an immediate crisis, is still looking at a very difficult path to profitability. But worry more about the real economy and the banks that rely on it.