Bank of America Corp (BAC): Can This Bank Win Back America?

Citigroup Inc (NYSE:C) has a brighter prospects than JPMorgan Chase & Co. (NYSE:JPM), but could still lose out if confidence in BofA increases. The company is well-leveraged in emerging markets throughout Asia and Latin America, and this could put the firm at an advantage over its counterparts if loan demand is weak in the U.S. However, with much of its attention on China, there could be further trouble if that economy doesn’t pick up the pace. But it should be noted that if Citigroup Inc (NYSE:C) is able to meet its target of cutting costs by $900 million this year and another $1.1 billion next year, then the firm could be the place to keep its profits high.

Boiling it down

Investing in a financial institution such as Bank of America seems like a risky venture, but with much of the repercussions of the recession behind the company, there is a solid chance that the firm will experience nothing but gains. The share price hasn’t reflected the overall economic recovery due to the hard feelings that many investors still have. But I consider the foundation of any good investment to be leaving emotions aside.

The article Can This Bank Win Back America? originally appeared on Fool.com and is written by Phillip Woolgar.

Phillip Woolgar owns shares of Bank of America. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America, Citigroup Inc (NYSE:C), and JPMorgan Chase & Co (NYSE:JPM). Phillip is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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