The hiring of Gary Lynch, who recently resigned from Morgan Stanley , is another red flag. Lynch was one of the toughest SEC enforcement heads ever—drawing comparisons to famously tough lawman Elliot Ness.
More recently, he was the London-based vice-chairman of Morgan Stanley. Bringing him on at least hints that Bank of America sees legal and regulatory trouble ahead.
Perhaps this will wind up being good news for investors. If anyone can twist the courts and regulators to view Bank of America in a better light, it’s probably Lynch. Perhaps.
Distressingly, Wall Street’s banking sector analysts seem to be unphased by all this. They’re already back to asking about when the dividend might be raised and talking about price targets well above where the stock is trading now.
Questions? Comments? Email us atNetNet@cnbc.com
Follow John on Twitter @ twitter.com/Carney
Follow NetNet on Twitter @ twitter.com/CNBCnetnet
Facebook us @ www.facebook.com/NetNetCNBC