BAC 'to be worst performer in 2011'

30 December 2011

Bank of America Corp (BAC) looks on course to be the worst performing bank in the Dow Jones Industrial Average for 2011.

The lender - which is the second largest in the US - has been hampered by increasing mortgage losses and the global economic slowdown, Bloomberg reports.

In addition, BAC appears set to finish bottom in Standard & Poor's 500 Financials Index and the KBW Bank Index for this year.

Greg Donaldson, chairman of Evansville, Indiana-based Donaldson Capital Management, claimed BAC - which has a history stretching back more than 200 years - has suffered due to a lack of confidence in management, the implementation of new regulations and the rising costs of bad loans.

The industry figure observed: "What you have is like a three-ring circus and in all the rings for Bank of America, the show isn't any good."

"You just got one surprise after another this year," he went on to point out.

By Asim Shah

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