Is Bank of America in danger of failing?
Based on the analysis of Bank of America's financial health, risk profile, and regulatory compliance, we can conclude that the bank is relatively safe from any trouble or collapse. The bank's financial performance has been stable, and its balance sheet shows a healthy level of capital and a diversified loan portfolio.
Bank of America is just one place below JPMorgan Chase on both the 2023 G-SIBs list and the Federal Reserve's list of the largest U.S. banks, which is why it was chosen in our research as one of the safest banks.
Bank of America is the second-largest bank in America in terms of assets, and they're FDIC insured up to $250,000 per depositor. They offer fraud protection and other security features like third-party access reviews and customized reviews, so you can keep an eye on your accounts.
Bank regulators view any ratio over 300% as excess exposure to CRE, which puts the bank at greater risk of failure. The banks of greatest concern are Flagstar Bank and Zion Bancorporation, according to the screener. Flagstar Bank reported $113 billion in assets with a total CRE of $51 billion.
Republic First Bank reported unrealized securities losses in excess of its equity as early as June 2022. State regulators closed Republic First Bank in April 2024, marking the first bank failure of the year.
| Bank | The Ascent's Rating | FDIC Insured? |
|---|---|---|
| Western Alliance Bank | 4.25 | Yes |
| SoFi | 4.00 | Yes |
| Wells Fargo | 4.00 | Yes |
| Axos Bank | 3.50 | Yes |
User reports indicate no current problems at Bank of America
Bank of America offers retail bank services to individuals and businesses, including checking, savings, credit cards, mortgages and loans.
Bank of America is a good choice for customers who want the comfort of having a bank branch or an ATM close by. However, that convenience is offset by savings accounts and CDs that have lackluster interest rates.
Based on our research on more than 100 traditional and online banks and credit unions, we give Bank of America 4 out of 5 stars overall. It earns points for its extensive branch network and solid mobile app and online platform, but loses points for offering lower interest rates than its competitors on deposit accounts.
Companies Considered Too Big to Fail
Bank of America Corp. The Bank of New York Mellon Corp. Citigroup Inc. The Goldman Sachs Group Inc.
Which 6 banks are in trouble?
| Bank NameBank | CityCity | Acquiring InstitutionAI |
|---|---|---|
| Heartland Tri-State Bank | Elkhart | Dream First Bank, N.A. |
| First Republic Bank | San Francisco | JPMorgan Chase Bank, N.A. |
| Signature Bank | New York | Flagstar Bank, N.A. |
| Silicon Valley Bank | Santa Clara | First–Citizens Bank & Trust Company |
- JPMorgan Chase.
- U.S. Bank.
- PNC Bank.
- Citibank.
- Wells Fargo.
- Capital One.
- M&T Bank Corporation.
- AgriBank.
- Stocks.
- Bonds.
- Mutual funds.
- Annuities.
- Life insurance policies.
- Safe deposit boxes.
- US Treasury bills, bonds or notes.
- Municipal securities.
| # | Bank | RCRE to T1+ALLL |
|---|---|---|
| 1 | Dime Community Bank | 549.80% |
| 2 | First Foundation Bank | 538.00% |
| 3 | Provident Bank | 483.50% |
| 4 | Valley National Bank | 472.70% |
Like banks, which are federally insured by the FDIC, credit unions are insured by the NCUA, making them just as safe as banks. The National Credit Union Administration is a US government agency that regulates and supervises credit unions.
Consulting firm Klaros Group analyzed about 4,000 U.S. banks and found 282 banks face the dual threat of commercial real estate loans and potential losses tied to higher interest rates. The majority of those banks are smaller lenders with less than $10 billion in assets.
- 10 Safest Banks in the U.S.
- Chase.
- Bank of America.
- Wells Fargo.
- Citi.
- U.S. Bank.
- PNC Bank.
- Truist.
In those cases, Bank of America illegally used or obtained consumers' credit reports, without their permission, to complete applications. Because of Bank of America's actions, consumers were charged unjustified fees, suffered negative effects to their credit profiles, and had to spend time correcting errors.
In most cases, the FDIC will try to find another banking institution to acquire the failed bank. If that happens, customers' accounts will simply transfer over to the new bank. You will get information about the transition, and you will likely get new debit cards and checks (if applicable).
Based on the analysis of Bank of America's financial health, risk profile, and regulatory compliance, we can conclude that the bank is relatively safe from any trouble or collapse.
What are the threats of Bank of America?
Threats. Economic Volatility and Interest Rate Fluctuations: BAC's performance is susceptible to economic downturns and interest rate changes. The bank's net interest income benefits from higher interest rates, but an unpredictable economic environment can lead to market volatility and credit risk.
Your card may be declined for a number of reasons: the card has expired; you're over your credit limit; the card issuer sees suspicious activity that could be a sign of fraud; or a hotel, rental car company, or other business placed a block (or hold) on your card for its estimated total of your bill.
What is Bank of America Financial Strength? Bank of America has the Financial Strength Rank of 4. GuruFocus Financial Strength Rank measures how strong a company's financial situation is.
Bank of America was ordered to pay millions of dollars after regulators learned it had opened fake accounts, double charged customers and withheld credit card rewards.
Bank of America pays slightly higher interest on your account balance. It also has a lower monthly fee and more options to have it waived. While the comparison between the two banks' checking accounts stacks up as a draw, the clear winner among savings accounts is Bank of America Advantage Savings.
