If you have been holding financial stocks in your portfolio, you may be getting used to seeing red during the trading day. If you’ve ever heard the saying, “buy into weakness, sell into strength,” this may be a prime example. The ever increasing scrutiny of large financial institutions by the American people, as well as fear over the real estate crisis, has turned financial stocks into the scapegoats of the market. The following five companies are making a real effort to clean up their books and reclaim the share prices that should accompany their prestigious and well known brand names.

Bank of America, (BAC) – BAC has been treading water lately, off its 52 week low of $5.13 set on 10/4/2011 but not by much. As the continued negative press of the foreclosure crisis and Occupy Wall Street continue to dominate the news, no other institution seems to be feeling the heat quite like Bank of America. The 52 week high of $15.31 set on 1/15/2011 seems like a distant memory at this point, and if you have been holding on all year or starting to think about getting on board, there are several items to consider. As non-performing loans continue to decline on a quarterly basis and sinking loan loss provisions are helping to grow earnings, Bank of America’s balance sheet is slowly making a transformation. The cash infusion of $5 billion provided by Berkshire Hathaway this summer should be a good sign to investors that Bank of America will have the necessary means to fulfill its obligations. To continue reading, click here