Bloomberg reports that the bank rose 1.9% to close at $15.20 in New York, bringing this year’s gain to 31%.
That follows last year’s 109% advance, the best in the Dow Jones Industrial Average, as Moynihan eased investor concern that mortgage costs would force the bank to issue more stock.
Before taking over in January 2010, Moynihan, 54, promised the bank’s board that he’d simplify and shrink the company after his predecessor, Kenneth Lewis, bought Merrill Lynch and Countrywide Financial. Moynihan has sold more than $60bn of assets, boosted capital and settled $50bn in mortgage claims.
'He’s getting back to the starting line', David Konrad, Macquarie Group's head of U.S. bank research, said in a telephone interview. 'He’s done a good job on the legal side getting us more comfortable with what’s left. Now the more challenging part is where you have to grow core earnings, not just shrink and eliminate risk'.
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