– If the financial crisis in 2008 primarily impacted investment banks, why did Bank of America stock fall way more than Goldman Sachs (as an example)?

Question

If the big investment banks were the ones betting wildly on mortgage backed securities and the insurance on them, how did some investment banks come out largely unscathed while Bank of America stock STILL is lower today than it was in 2007?

In: 8

Answer 1

Banks that had more securitized MBS (mortgage backed securities) and just mortgage exposure in general got hit the hardest.

Goldman had less of this exposure than BofA