Bank of America glass half-full?

It would be easy to interpret the auction of 272 million warrants on the Bank of America (BAC Bank of America news) stock as unqualified good news. After all, it means the bank has finally made good all its TARP (TARP news) obligations; Citigroup (C Citigroup news) cannot make the same claim. Of course Bank of America paid a steep price for its TARP extrication in terms of a massive amount of new shares outstanding. Still, you may be wondering if this is a profound watershed? Well, the coming of Brian Moynihan and his new executive teams would suggest as much. The new board also seems to be a breath of fresh air.

But TheStreet.com notes, "Moynihan has yet to outline any comprehensive business plan for how Bank of America will capitalize on its size and strengths to become not just the largest U.S. bank, but the best and most profitable." He does seem to be emphasizing customers, to change the bank's reputation from a large, cold, corporate entity that preys on consumers with hidden fees and soaring interest rates, to one that explains terms clearly and is ready to offer appropriate financial services. Bank of America has adopted many of the government's programs to protect and assist consumers ahead of its peers--most notably, JPMorgan Chase (JPM JPMorgan Chase news), which has fought some of them tooth and nail." The jury is still out, and short interest is still high. We'll just have to see. 

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