Bank of America (NYSE:BAC) is engaged in "accounting arbitrage" says Manal Mehta, reserving far...

Bank of America (NYSE:BAC) is engaged in "accounting arbitrage" says Manal Mehta, reserving far less for legal cases than it may have to pay out. If regulators forced the bank to properly account for the possible losses, it's likely they would disallow any capital returns and force BofA to continue socking away its profits.