Bank of America acquired Countrywide Financial, the nation’s largest subprime mortgage lender, in 2008.
Mosby said that the largest risk for BAC could include mortgage put-backs and home equity products.
“Those are products that are still here domestically, the ones that have the most potential stress if we were to dip into another recession,” he said.
Mosby said he believed that Bank of America had enough capital to pass stress tests, even the more stringent financial standards laid out by Basel III. But increased guidelines would mean more capital BAC would have to raise, up to $45 billion.
Mosby rated the stock “neutral” and set a price target of $6.50 per share. BAC stock closed at $5.48, down more than 2 percent.
Trader Anthony Scaramucci said he continued to like financials stocks.
“Let’s clear out where we are today, and let’s price them for next year,” he said. “I think these stocks are very, very cheap.”