Bank of America (BAC) doesn’t have a long term growth strategy and that will hurt it if a global recession occurs, according to Roger Arnold, a contributor for Real Money. Arnold said while other money center banks have been diversifying and growing various lines of businesses, Bank of America has focused on cost cutting and has been relying almost exclusively on commercial and industrial loan growth. Arnold recently wrote that if an investor feels compelled to invest in one of the money center banks, JPMorgan Chase (JPM), Wells Fargo (WFC)and Citigroup (C) are better choices. Arnold said it’s possible that Bank of America management will change directions and again focus on substantive loan making, but until then, he’s negative on the stock. TheStreet’s Rhonda Schaffler has details from Wall Street.
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