Page 31 - Bank of America E Teaching Note

fine but is now facing a more secure financial future. (Ref
2, 3)

Diagram 6 gives a representation of the volatility of BofA’s

earnings per share where from 2010 to 2014 there was

high volatility but thereafter followed a period of

stabilisation. Perhaps this can be taken as reflecting the

performance of BofA’s strategic management and the

strategies they have followed since the financial crisis and

Buffett’s foresight?

Diagram 6: Ref 3

It could be argued that Moynihan has been, given the

share price movement, working not to pay dividends but

rather to achieve financial stability even through the buy-

back of shares.