Dick Bove Tells Fox Business Bank Of America CEO Brian Moynihan's "Credibility Has Fallen Dramatically"

Rochdale Securities financial analyst Richard Bove spoke with FOX Business Network's (FBN) Chris Cotter and Liz Claman about the 20 percent drop in Bank of America stock yesterday and what it says about the overall health of the company. Bove said that while CEO Brian Moynihan's “credibility has fallen dramatically”, “everything is fine at Bank of America.” He went on to say that the bank “has more than enough cash” and does not need to raise capital in order to survive. Excerpts from the report are below, On whether Bank of American needs to raise capital: “Everything is fine at Bank of America so I hate to tell you that I agree with Mr. Moynihan. The company has 140 billion dollars in cash, close to 300 billion dollars in securities, if all of the short term lenders to bank of America wanted their money back immediately, Bank of America has more than enough cash to give it to them. The bank is not in trouble. The issue is that the mortgage industry continues to be in trouble, continues to be a serious of lawsuits. The fear will not go away that the problems in the mortgage industry is going to create some type of major disaster at Bank of America. It will not. It does not need more capital.” On Bank of America CEO Brian Moynihan: “Unfortunately, Mr. Moynihan's credibility has fallen dramatically because the company made certain statements concerning what their losses would be in the mortgage sector and what the earnings might be going forward, and all of those promises have not been kept. It is very difficult for Mr. Moynihan to convince investors what he says is correct. Having an hour presentation is a terrible mistake; if I tell you as a CEO I don't need equity, I don't need shareholders. He should not do this meeting tomorrow. There is very little he can say other than ‘I will increase the dividend, that will get the stock to move higher.'”