Bank of America (BAC)

Bank of America is the closest thing to a nationwide bank in the U.S. It is a dominant player in some of the most dynamic, high-growth regions in the country, such as California, Florida, and Texas.

In 2005, BAC bought a 9% stake of China Construction Bank, China's second largest bank. In November 2008, it moved to increase its holding in the Chinese state owned bank from 10.75% to 19.1%. ^[1]

Bank of America has turned its sights on Merrill Lynch, buying it out for close to $50 billion. Bank of America has, indeed, created a reputation for itself as a kind of savior, especially since its earlier acquisition of the embattled mortgage lender - Countrywide Financial Corp. Bank of America now moves from $1.7 trillion in assets to approximately $2.7 trillion. The acquisition has allowed the company to improve its capitalization ratio and receive around $7B in cost-reduction efficiency.

The question is whether or not BoA can absorb the losses that Merrill is seeing due to its riskier CDS and real estate investments.

As the leading issuer of credit cards through endorsed marketing and #1 holder of deposits nationwide, Bank of America will experience steady growth for many years to come.