Bank of America confirms U.S. deal; +1.1% premarket

Previously tipped off as being about $17B, the $16.65B comprehensive mortgage-related settlement with the DOJ and six states' Attorneys General includes a $9.65B cash payment and about $7B of consumer relief.

The deal is expected to reduce Q3 pretax earnings by $5.3B and EPS (after tax) by about $0.43 per share.

BAC +1.1% premarket

Previously: BofA reportedly settles mortgage claims for $17B

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Comments (24)
  • Seekinggreatwealth
    , contributor
    Comments (87) | Send Message
    So now that that the Bank and the DOJ have resolved this, can we expect the DOJ to go after the politicians for their role in the collapse as well as the CEO's and of course the greedy consumers who bit off more than they were able to manage,
    21 Aug 2014, 09:30 AM Reply Like
  • Topcat
    , contributor
    Comments (580) | Send Message
    That all depends upon whether laws are broken.
    21 Aug 2014, 01:01 PM Reply Like
  • Eightball
    , contributor
    Comments (208) | Send Message
    The charge is much less than I was expecting. That is a positive development. Should still have a profit for the year.


    Overall, great news! And I'm glad the bank paid its debt to society.
    21 Aug 2014, 09:31 AM Reply Like
  • mijofl
    , contributor
    Comments (6) | Send Message
    Paid it's debt to society?? This is just fundraising for this corrupt administration...Nothing more, nothing less.
    21 Aug 2014, 10:37 AM Reply Like
  • Eightball
    , contributor
    Comments (208) | Send Message
    If you think they just agreed to a 16 billion plus fine when they weren't guilty you need to pass that good good you are toking on.
    21 Aug 2014, 11:54 AM Reply Like
  • Ruffdog
    , contributor
    Comments (3674) | Send Message
    BAC should have held out for 8B of consumer relief and maybe only 1B to the Obama administration.
    21 Aug 2014, 09:35 AM Reply Like
  • Palenque
    , contributor
    Comments (395) | Send Message
    The deal is a bargain for BAC . The stock is a bargain for investors. See you at $35
    21 Aug 2014, 09:37 AM Reply Like
  • Nasty_nas
    , contributor
    Comments (72) | Send Message
    Where is FF? I miss him/hr/
    Hey it could be a programmed computer....
    21 Aug 2014, 09:42 AM Reply Like
  • pemoj
    , contributor
    Comments (99) | Send Message
    Hummm... perhaps he is enjoying his holidays, as you are not doing?
    21 Aug 2014, 10:43 AM Reply Like
  • papayamon
    , contributor
    Comments (1379) | Send Message
    it's settled? that's no funfun!
    21 Aug 2014, 10:14 AM Reply Like
  • muddpye
    , contributor
    Comments (36) | Send Message
    grinding lower left to upper right from here…
    21 Aug 2014, 10:23 AM Reply Like
  • mphill47
    , contributor
    Comments (604) | Send Message
    Damn that me again.......FunFun
    21 Aug 2014, 10:37 AM Reply Like
  • dictionshunary
    , contributor
    Comments (770) | Send Message
    Haha FF is drowning in a pool of tears because he didn't buy BAC at these super low levels. We continue to believe BAC is the place to be. Got a client that literally bet the farm on it and believes like us that he'll be able to buy it back plus two farms on the same road! Buy BAC and stay long. Easy double in a year and back into the 40s within two. Mgmt is too good, product too good and entity too well known and trusted for this to do otherwise. Don't believe, the newly named Funs, nor all the technical mumbo jumbo. Simple reality learned at HBS 6 yrs ago!
    21 Aug 2014, 11:13 AM Reply Like
  • fredcox
    , contributor
    Comments (4) | Send Message
    $35....?! Maybe in3 years... Happy with a quick $18.00. The punitive portion is merely a rape of shareholders equity.
    21 Aug 2014, 11:28 AM Reply Like
  • jeff lauder
    , contributor
    Comments (184) | Send Message
    More like a 12.5B settlement. They get 4B in tax deductions. This thing is gonna fly!
    21 Aug 2014, 01:02 PM Reply Like
  • bronchiti
    , contributor
    Comments (59) | Send Message
    Hopefully it's non stop to 18$
    21 Aug 2014, 01:03 PM Reply Like
  • I_Drank_Too_Much_Malt_Liquo...
    , contributor
    Comments (188) | Send Message
    Where is that funfun loser now?
    21 Aug 2014, 02:47 PM Reply Like
  • BD88
    , contributor
    Comments (133) | Send Message
    Fun fun.....Donnie Dion... You boys come out.
    21 Aug 2014, 02:59 PM Reply Like
  • papayamon
    , contributor
    Comments (1379) | Send Message
    Too bad I don't have an ivy league education. If only I'd gone to WHARTON school of business, I could understand how today is really a huge negative for this stock, which is far more likely to go to $9 than $20. Or maybe I'm just tripping, and
    having lots of funfun.


    Bac will hit the mid 20's in 2015. Huge returns for those who buy options.


    oh yes, and BAC is in a dispute with a software vendor. I guess that negates this settlement. (actually, that article cracked me up).
    21 Aug 2014, 04:17 PM Reply Like
  • papayamon
    , contributor
    Comments (1379) | Send Message
    Ok. Now I have it out of my system. There was plenty of kicking BAC on ethics, even though the violations didn't have anything to do with BAC, at least insofar as the DOJ's action.


    I just thought it strange that the kickers never acknowledged that.


    The settlement and subsequent increase in price were highly predictable. I made a nice trade with this, and still long 220K in jan 2016 $15 calls. I invite the naysayers to watch me at least double my money in the next 17 months.
    21 Aug 2014, 07:11 PM Reply Like
  • mphill47
    , contributor
    Comments (604) | Send Message
    A double should be no problem Papa !! Don't get greedy and look for a 3-4X though.
    21 Aug 2014, 09:05 PM Reply Like
  • Seanebr
    , contributor
    Comments (203) | Send Message
    I'm with you all the way papaymon! I think a price move like that is highly probable, but will require a 10 cent dividend and at least $5B in share buybacks next year. In addition to that, we need to figure out how to stop all these dam bond funds from buying up all of our 10-year Treasury notes! (which is depressing interest rates in the short-term). Either way I'm excited to see what happens! Let it ride baby!
    21 Aug 2014, 10:01 PM Reply Like
  • funfundvierzig
    , contributor
    Comments (4855) | Send Message
    The milestone $17 billion hit simply confirms Bank of America is the leading bank in fraud and dirty play in North America in the 21st century. That daunting commercial reality gives us real pause as an investor in financial equities. …funfun..
    26 Aug 2014, 06:08 AM Reply Like
  • papayamon
    , contributor
    Comments (1379) | Send Message
    Funfun, while you have been taking your "real pause", BAC has started a substantial upward move. Looks like anyone who listened to you would have missed that.


    "Fraud and dirty play" are pretty vague terms. What exactly do they prove? That you think this? Why would that matter even a fraction of a cent to me or any other investor?


    Simply repeating this enough times won't make it true. I think if you know of any current violations, you should call the appropriate authorities. After all, if this is the great evil fraud in the world and worthy of dedicating a big part of your life to (even though you don't have a dime invested here), it should be easy for you to blow the whistle on BAC by insuring that they are reported.


    Tsk. The rub is that in order to do this, you've got to have actual facts. Dates, times, events, people, documents, etc. Otherwise, you could call the DOJ and tell them BAC is "the leading bank in fraud and dirty play". I'm sure they'll appreciate that information.
    28 Aug 2014, 07:24 AM Reply Like
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