I wrote in a post last week that I believe Bank of America (BAC) is fairly valued somewhere in the $12.16-$15.05 range. Currently, intraday Monday, it’s trading at $12.25 per share. Its current price is predicated on the assumption that BAC’s ROE regresses back to a level supported by the Federal Reserve’s long-term projected neutral overnight rate (approximately 3.00% based on Fed research). Despite BAC’s fall down to the lower 12’s, I don’t consider anything an automatic buy if it ventures toward or outside the low end of this scale. I still expect a discount relative to that lower bound figure. Financial institutions with notable UK exposure are in for some further punishment at least for another day and I don’t see BAC, in particular, becoming attractive until it could possibly hit south of $11 per share. Some flew into bank stocks once they dropped 5%-10% (in many/most cases), only to find themselves already down another 5%-10% the day after the trade. Many bank stocks are arguably still relatively expensive.