Bank of America (NYSE:BAC) is Number One
What does it take to be number one? Two is not a winner. Three no one remembers. Bank of America is number one on the Bank Loser Board. The Loser Board is created by NYU Stern.
The program calculates the expected capital shortage faced by a firm in a potential future financial crisis. Conceptually this calculation is like the stress tests that are regularly applied to financial firms, however here it is done with only publicly available information and is quick and inexpensive to compute.
Paulson has recently sold out of his stake of the Bank. Too bad he didn't get out earlier at better prices. What is most impressive to me is how the bank continues to lose money when interest rates are at all time lows. It's to be expected if you make a series of short sighted financial decisions, underestimating true risk.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.