Should You Buy the Dow — Bank of America

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tdp2664 InvestorPlace Today we’ll look at Bank of America (NYSE: BAC ), the financial services behemoth that has been the source of much controversy lately. Besides banking and credit cards, its Home Loans & Insurance segment offers consumer real estate products and services, and provides property, disability and credit insurance. The Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement and custody services; debt and equity underwriting and distribution, merger-related advisory services, risk management products, and integrated working capital management and treasury solutions. The company's Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise and asset management products. The key driving factor behind Bank of America is its mortgage issues. Simply put, there is too much uncertainty surrounding its toxic mortgage holdings, along with whatever surprises are hiding in the Countrywide purchase. On top of this, the government is suing the bank along with 16 others for its role in the mortgage debacle. The kicker, though, is that Warren Buffett was convinced to invest $5 billion in the bank. If BofA didn't need that money, why is it taking it? Because somebody somewhere didn't like the company's liquidity situation and asked Buffett to step in. The company also just fired some top management and is about to cut 30,000 jobs. This is a company in trouble. Normally, this is the part of the article where I'd delve into financials. But Bank of America's financials are so complex — and there is so much that might be hidden — that it's a waste of time. There are so many other banks and financial services companies that are not in this kind of trouble, and in fact are extremely healthy, that it makes no sense to even consider Bank of America a viable candidate at this time. Conclusion I suppose if you are a speculative investor and think BofA will experience a big turnaround, you could drop some money into the stock and hope for a good outcome. But this series isn't about making speculative investments. Therefore: I believe Bank of America is a sell for regular accounts. I believe Bank of America is a sell for retirement accounts. Lawrence Meyers does not own shares of Bank of America.