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Finger Interests Managing Partner Jonathan Finger on Bank of America shareholders’ concerns about the bank’s earnings and management.
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Time for investors to jump in -- or jump ship when it comes to that -- Bank of America and curious Jonathan finger.
As we said owns more than a million shares at one point one million shares.
He's a managing partner -- finger interest joining us in a Fox Business exclusive from Houston -- job for the first welcome thank you so much for joining us exclusively let me get your thoughts.
Well I think.
-- it was -- but I think investors were disappointed on a couple of points.
What we're disappointed about you.
Well I think on the earnings side they were concerned about the net interest margin that's -- difference between what a bank makes on its assets and loans and what it pays for deposits.
And that fell from two and a half percent to 2%.
And loan growth also was negative so I think people are concerned about the revenue side of the income statement there.
On the expense side I think the big disappointment has to do with the legacy asset servicing.
These are the bad mortgage loans -- the bank services on behalf of itself and others.
And I think the street was looking for these expenses to start coming down in 2012.
They didn't get that they got some guidance that it's probably gonna start to happen in 2013.
I think that was a disappointment.
And I and I want to explain to our viewers why you're on our air talking about this Jonathan has -- Bank of America -- what about 1996 when you were buying it at 25.
Twenty to 25 dollars a share you have been a vocal shareholder.
Angry understandably about mismanagement all kinds of issues and problems.
You know you have some real legitimate gripes but where do you see real room for improvement I mean if you had the CEO Brian -- -- hand in front of you what would you say.
Tackle this issue first.
Well laid back up -- the company you know in the earnings report today that investors also got what they expected in May be little more on the balance sheets side.
Morning and and his team have done a pretty good job of working on -- legacy asset issues compact cleaning up the balance sheet improving liquidity strengthening things.
What what I tell morning hand I think shareholders.
Deserve at least an explanation why the board and management haven't looked hard at.
-- countrywide and what some of the alternative solutions are can countrywide be put into bankruptcy like whereas cap.
If not that I think shareholders deserve deserve to know why not.
Countrywide of course brought along some real toxic mortgage substance there that.
Hurt Bank of America when they acquired it and we just need to let people know that.
That may be an issue is it possible that they could surgically remove countrywide and put that specifically.
In the bank of into bankruptcy mean have you looked into that possibility.
We have not looked at it specifically but if you take a look at rest cap what ally is doing with rest cap.
They're doing essentially the same thing with a mortgage subsidiary.
And they're wiping out all because these -- representation and warranty liability issues that come along with that subsidiary side I think shareholders deserve.
To know why that hasn't been -- that or why that hasn't been done that's -- big overhang on the stock.
What does the one thing that you have learned Jonathan about being a shareholder you know you well more shares than some.
Less than others but you've been certainly vocal does it make a difference I've heard Warren Buffett who of course is really mattered.
When it comes to being shareholders I once said to him about Moody's when he was too big shareholder have you.
Talk to the CEO Lisa don't listen to us imagine they don't listen to Buffett into the listen these -- Right -- you know it's difficult I think you need to be a you need to look at the management of of companies that you -- and I think that's.
A critical critical issue and then there's this.
In our campaign was a tough and we had to fight we had to put out a lot of time and resources to get our message out.
And I I think some that's gotten through management and the board.
Well that's certainly good news and and you you have an area here you've got to loudspeaker what comes to Fox Business we do want to hear when shareholders like -- Have legitimate issues that -- like.
For the company to hear -- by the -- so you're in Houston right now.
You get and I'm holding this up I don't know if you can see it but it's the Jeremy Lin the Lin sanity.
Sure that we lost -- here in New York the -- said you know what we're not gonna match the Houston Rockets -- you got excited do you think that -- insanity will take over in Houston.
I hope so we'll take -- we'll take him.
Hopefully he can turn the team around.
Current we'll hopefully we'll see Bank of America get back to what you bought about around twenty dollars it's a long way from Merritt seven in -- Jonathan good to see you thank you for joining us.
Thank you.
Jonathan finger is managing partner at finger interests and a Bank of America shareholders who folks has really been honest about his concerns sometimes they listen sometimes they don't but.
