SOURCE: The Bedford Report

The Bedford Report

August 26, 2011 08:16 ET

Turnarounds at Bank of America and Citigroup Begin at Last

The Bedford Report Provides Equity Research on Bank of America & Citigroup

NEW YORK, NY--(Marketwire - Aug 26, 2011) - Banking stocks have been crushed in recent months, with fears of a double-dip recession and the ongoing foreclosure crisis pushing shares of several major banks back to levels not seen since 2009. Despite the negative sentiment, several statistics show major banks are continuing a successful recovery from the 2008 financial crisis. The Bedford Report examines the outlook for companies in the Financial Sector and provides equity research on Bank of America Corporation (NYSE: BAC) and Citigroup, Inc. (NYSE: C). Access to the full company reports can be found at:

www.bedfordreport.com/BAC

www.bedfordreport.com/C

The Federal Deposit Insurance Corporation (FDIC) said the institutions it insures recorded $28.8 billion in net income over the April-June period, up 38 percent year-on-year. The increase marked the eighth straight quarter in which earnings moved in a positive direction, although revenue fell for the second quarter in a row.

The FDIC explains that banks are posting stronger profits despite weak revenues due to stronger balance sheets and better capital positions.

The Bedford Report releases market research on the Financial Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Further hinting that Bank stocks may have finally bottomed out, Warren Buffett's Berkshire Hathaway announced that it would invest $5 billion in Bank of America Corp. Berkshire is buying preferred stock that pays a 6 percent annual dividend. Keith Springer, president of Springer Financial Advisors in Sacramento, told CNN that "Buffett knows that the government is not going to let BofA fail. So he's got a quasi-government insured CD with a 6% yield and upside potential."

Shares of Citigroup also rallied on the news. Estimates from Glenn Schorr, an analyst with Nomura Holdings show that Citigroup had a Basel III Tier 1 common ratio of 6.8 percent at the end of the second quarter of this year, compared with Bank of America's 5.1 percent.

The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.bedfordreport.com/disclaimer.

Contact Information