Activist investors may be targeting Too Big to Fail lender Bank of America

Core Viewpoint - There is emerging activist interest in Bank of America, the second largest bank in the U.S., due to its underperformance and leadership issues [1][3]. Group 1: Bank Performance - Bank of America has shown weak stock performance over the past five years, only outperforming Citigroup and Wells Fargo marginally [1]. - The bank's stock increased by more than 60% over the last year, but it is still perceived as underperforming compared to its peers [3]. Group 2: Leadership Concerns - CEO Brian Moynihan is criticized for a lack of significant new hires and for not effectively utilizing the bank's substantial balance sheet, which is resulting in missed opportunities [2]. - Activists believe that a change in leadership, specifically the removal of Moynihan or an announcement of his early retirement, could lead to a rebound in the bank's stock [3]. Group 3: Comparisons with Competitors - Wells Fargo, under new CEO Charlie Scharf, has seen its stock appreciate significantly, outperforming the S&P 500 over the past year [2]. - Citigroup is also undergoing a transformation under CEO Jane Fraser, focusing on streamlining operations and enhancing leadership [2].