I remember attending a town hall meeting a while back where one of the presenters stated Bank of America was the undisputed market maker in the U. S. A. Such statement got me thinking if it's possible for the bank to trade its own stock as it is one of the most traded, if not the most traded stock in the market.
I appreciate any insights on this.
Note: I'm not asking if it's immoral or illegal
Pretty sure Apple, GE, Samsung, Sony, Chase, Wells and a few dozen others would laugh at the market maker comment. Anyone telling you B of A is king is either a moron or a paid B of A trainer
Think of this post as a semaphore where age is the vehicle
Interesting that some feel a 73 year old should not be working anymore. What do you think that? He/she has just as much right to work as you do (maybe more). You should be happy they are still self-supporting.
The type of questions asked on this board make me wonder if the majority of these posters are between the ages of 7 and 13. I have a feeling that is not the case since most of the people I work with are around 32 and 35; the exception being the guy who sits in the corner. He is 73 and should not be working anymore.
Very insightful.
Thank you for your reply!
Short answer. No. BAC cannot trade it's own stock on a principal basis. Meaning it cannot take a risk position in BAC stock.
BAC and ML stopped being a real market-maker 15-20 years ago in any stock. Today, BAML will take positions to facilitate client trades. That means BAML can put up capital to share the risk in large buy/sell orders. Buy ~25% for example upfront, then trade along with the client over the day kind of thing.
But buying/selling on BAML's account, for a mark-up, to turn a profit. No. Doesn't happen on US stocks.