Can Bank of America suffer any more than it already has? It sure can.

TheStreet.com puts it this way: "Bank of America may have had a dismal 2011, but you haven't seen nothing yet." The issues are pretty well known. The commentator suggests that overall market environment, especially with the European situation so unsettled, remains all too punishing, and bank stocks are going to among those that fare worst.

"Will Bank of America survive the coming market disaster? Probably, but let's get real, folks: This is not a canoe you want to be sitting in when the storm comes across the Atlantic."

But Europe is only one concern. We would add to the list the state mortgage settlement fiasco that is upon us and the mounting litigation risk. As if on cue, Bank of America (along with Ally) was sued again, this time by German bank DZ Bank AG, over nearly $300 million in RMBSs that went sour. And then there's the capital challenges.

No one would be surprised if the bank were forced to issue more common shares to retire more preferred securities. And down the line, no one would be all that surprised if the bank were to reverse split its stock, just as Citigroup did. The upcoming stress tests by the Federal Reserve will be telling.  The conventional wisdom is that any move to return value to shareholders is so far out of the question as to be risible. Brian Moynihan still has a whole lot cut out for him. 

For more:
- here's the commentary

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