Tue, Nov. 17, 4:36 PM
- "I call them aggravators," says PNC Financial (NYSE:PNC) CEO Bill Demchak, asked at a conference about restricting access to data aggregators like Mint.com, Quicken, and Digit.co. "We don't know how well they are protected," says Demchak, talking about the security of the apps. "They slow down service to the rest of our accounts, and we react to that."
- Demchak then turned the question over to Bank of America (NYSE:BAC) CEO Brian Moynihan who was seated next to him" "There's a safety and soundness issue," says Moynihan. "There's a risk."
- Previously: WSJ: BofA joined those cutting off finance sites from its data (Nov. 10)
Tue, Nov. 17, 9:21 AM
- For what is now the fifth consecutive year, Bank of America (NYSE:BAC) ranks last among large U.S. banks in customer satisfaction, according to the American Customer Satisfaction Index.
- BofA had 68 points (down from 69 a year ago) versus Wells Fargo with 75, Citibank at 73, and Chase at 71. The overall average score for banks (with smaller players included) was 76.
- The outfit doesn't give a specific reason for BofA's weaker performance, but the bank has been aggressive in embracing the mobile revolution - shedding branches, eliminating drive-up services, and automating as much as possible of what's left.
- In other news, Soros Fund Management reports (as of 9/30) owning call options in BofA controlling nearly 1M shares.
Thu, Nov. 12, 12:56 PM
- As floated last week, Bank of America (BAC -1.4%) picks outgoing Ford Motor General Counsel David Leitch as its new global general counsel, effective Jan. 1.
- Lietch replaces Gary Lynch who is now vice chairman at the bank after spending the last four years inundated with the bank's numerous crisis-related legal issues.
- Source: Press Release
- Previously: WSJ: BofA set to name new general counsel (Nov. 4)
Tue, Nov. 10, 9:43 AM
- "This is a shot across the bow from banks," says Pinnacle Advisory's Michael Kitces. At issue are popular aggregator sites - think Mint.com, Quicken (NASDAQ:INTU), Digit.co - which allow consumers to monitor all of their financial relationships in one place.
- JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) in recent months have also disrupted the data flow to these operators, according to the WSJ. Bank of America (NYSE:BAC), reports the Journal, took action in July, with at least two aggregators being shut out.
- Naturally trying to protect their turf, banks are also concerned the aggregator sites could threaten account security (they often require bank-account passwords be turned over). Fifth Third Bancorp (NASDAQ:FITB), Capital One (NYSE:COF), and JPMorgan are among those warning customers against sharing information with third parties.
Mon, Nov. 9, 4:24 AM
- The Financial Stability Board has published new rules that aim to stop banks from becoming "too big to fail," confirming its final proposals for Total Loss Absorbing Capacity, or TLAC.
- Under the plan, large lenders will have by January 2019 to hold a financial cushion of at least 16% of their risk-weighted assets in equity and debt that can be written off. That requirement will gradually increase, reaching 18% of assets weighted by risk by January 2022.
- The FSB will put the rules, which will apply to the world's top 30 banks, to the G20 later this month.
Fri, Nov. 6, 10:04 AM
- The major averages are lower following the blowout jobs number, but the financial sector (XLF +1%) is charging ahead, enthused at what appears to finally be the near-certain prospect of higher interest rates.
- Short-term interest rate futures are pricing in about a 75% chance of a rate hike next month, and the 10-year Treasury yield is up nine basis points to 2.32%. The two-year yield has soared all the way to 0.90% - its highest level in more than five years.
- The green in this yield-starved sector is everywhere: Bank of America (BAC +3.5%), Citigroup (C +3.4%), U.S. Bancorp (USB +2.8%), Regions Financial (RF +3.7%), PNC Financial (PNC +2.4%), Capital One (COF +1.4%), Bank of New York Mellon (BK +1.9%), E*Trade (ETFC +3.5%), Schwab (SCHW +5.1%), Interactive Brokers (IBKR +3.4%), MetLife (MET +3.2%), Prudential (PRU +3.6%).
- Previously: Big beat on jobs number (Nov. 6)
- Previously: December rate hike back on after big jobs number (Nov. 6)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, KIE, IAT, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KRU, KBWR, RWW, RYF, KBWP, KBWI, FINZ, KRS, XLFS
Wed, Nov. 4, 3:40 PM
- "This transaction is consistent with Bank of America’s (NYSE:BAC) ongoing efforts to simplify its business, in this instance, by outsourcing certain product manufacturing functions to an industry leader," says a bank spokesperson following yesterday's deal to sell its $87B AUM money-market business to BlackRock (NYSE:BLK).
- While ZIRP has crimped the profitability of money-market funds, the deal could wind up being a sweet one for BlackRock should rates rise, and the boosted size (AUM will rise to $372B from $285B) should bring needed efficiencies if rates don't move. "It's a challenge managing cash in a low interest-rate environment, so we have to be highly efficient," says Tom Callahan, co-head of global cash management. BlackRock will leapfrog JPMorgan to become the #2 money market fund family after the deal closes next year (Fidelity is #1).
- Terms were not disclosed.
Wed, Nov. 4, 12:19 PM
- David Leitch - who is retiring as Ford's general counsel - is set to be Bank of America's (NYSE:BAC) next chief lawyer, according to the WSJ.
- The hiring comes after a search which took far longer than expected after current general counsel Gary Lynch signaled months ago of his desire to step down.
- Leitch is 54 years old and has been with Ford for more than a decade. He's exiting on Jan.1.
- Lynch will stay with BofA in his role as vice chairman.
Fri, Oct. 30, 7:42 PM
- Bank of America (BAC -1.8%) has come to a $335M settlement of a lengthy federal suit where it was accused of misleading shareholders about mortgage-backed security exposure, and about its dependence on MERS, the national mortgage electronic registry.
- In its 10-Q filing, the bank said the $335M was fully accrued as of June 30, though the deal still needs final court approval.
- The suit was led by the Pennsylvania Public School Employees Retirement System, which said shareholders were misled into buying BAC stock in 2009 and 2010. It was allowed to go forward by a federal judge in July 2012.
- Shareholders had claimed the bank knew it couldn't raise enough capital if it revealed it had to buy back billions of dollars in securities, and that it knew MERS was so shoddy that it wouldn't be able to legally foreclose on thousands of delinquent mortgages.
Wed, Oct. 28, 12:42 PM
- With Carl Icahn's targeting of AIG, activists are clearly climbing higher on the financial-services food chain, writes David Reilly. The goal is to make the companies small enough to not be subject to the sorts of stringent D.C. regulations associated with being too-big-to-fail.
- A case in point is CIT Group, which last week announced the departure of John Thain and a plan to sell certain units. Thain's goal had been just the opposite - to turn CIT into a TBTF.
- The biggest of the big won't be quaking in their boots, says Reilly, noting the typical tools of the activist - boosting capital returns or levering up - would be dead on arrival in Washington. As much as investors would like to see Citigroup (NYSE:C) and Bank of America (NYSE:BAC) broken up in order to realize value - they haven't traded above book value in seven years - it's not going to happen this way.
- Previously: Carl Icahn targets AIG (Oct. 28)
- Previously: CIT Group soars after strategic shakeup (Oct. 22)
Thu, Oct. 22, 10:51 AM
Wed, Oct. 14, 10:15 AM
- Talking expense cuts on the earnings call, Bank of America (BAC +2%) CEO Brian Moynihan says it's happening in the back office - though overall headcount fell 1.5K in Q3, "client-facing" headcount added 1.6K workers.
- Moynihan also notes job cuts are slowing - the bank had cut 3K or more workers in each of the previous 15 quarters.
- Loan growth is the word: Excluding LAS (legacy assets & servicing), total loans and leases of $729B were up from $710B in Q2 and $668B a year ago.
- Mobile banking users grew to 18.4M, with 14% of deposit transactions completed through mobile devices. Financial centers are down 4% from a year ago to 4,741.
- Webcast and presentation slides
- Previously: Bank of America higher after earnings beat (Oct. 14)
- Previously: Bank of America beats by $0.04, beats on revenue (Oct. 14)
Wed, Oct. 14, 7:18 AM
- Excluding market-related adjustments, net interest income of $10.3B slipped from $10B in Q2 and $10.54B a year ago. Noninterest income of $11.171B fell from $11.629B in Q2, and rose from $10.99B a year ago.
- Excluding litigation, noninterest expense of $13.6B fell 4%. LAS noninterest expense excluding litigation of $900M fell 32%.
- Tangible book value per share of $15.50 up 10%. ROA of 0.82%, ROTCE of 10%. Fully phased-in CET 1 ratio of 11% up 60 basis points.
- Consumer Banking net income of $1.759B vs. $1.669B a year ago, on revenue of $7.832B vs. $7.749B. $13.7B of mortgages originated vs. $11.7B. Client brokerage assets of $117.2B up 8%.
- Global Wealth and Investment Management net income of $656M vs. $812M a year ago, on revenue of $4.468B vs. $4.666B.
- Global Banking net income of $1.277B vs. $1.521B a year ago, on revenue of $4.191B vs. $4.345B.
- Global Markets net income of $1.008B vs. $371M a year ago, on revenue of $4.071B vs. $4.161B. The boost is income is thanks to lower noninterest expense thanks to lower litigation cost. FICC revenue excluding net DCA fell 11% from one year ago. Equities excluding net DVA increased 12%.
- Conference call at 8:30 ET
- Previously: Bank of America beats by $0.04, beats on revenue (Oct. 14)
- BAC +1.4% premarket
Wed, Oct. 14, 7:02 AM
Tue, Oct. 13, 5:30 PM
Wed, Oct. 7, 8:33 AM
- A badly-burned Bank of America (NYSE:BAC) won't do it anymore, but JPMorgan (NYSE:JPM) - aiming to make up for slowing business in its mortgage operation - is increasingly buying loans from smaller lenders, writes Dan Freed for Reuters.
- In H1, the Bank of Dimon bought 62% of the $58B in residential mortgages added to its books, up from 56% in 2014 and 37% in 2011. According to Inside Mortgage Finance, JPMorgan has shown the biggest increase among peers in so-called correspondent lending.
- "As they gain more confidence about the environment, they go right back to the correspondent channel for more volume," says analyst Charles Peabody. "There's more risk in being that far away from the customer," says BofA's Steve Boland, who leads mortgage and auto lending. For its part, JPMorgan says it only works with "experienced, well-managed, and high quality lenders," and reviews every loan in detail.
- Wells Fargo's (NYSE:WFC) Eric Stoddard - who runs the bank's correspondent business - says it's cheaper to buy mortgages from other lenders than to make the loans itself.
- "I think Bank of America's (policy) is a little foolish," says lender Ken Perimutter, whose PERL expects to make about $1.6B in home loans this year, and sell about 60% of those to JPMorgan.
Bank of America Corporation is a bank holding and a financial holding company. Through its subsidiaries, it provides banking and non-banking financial services and products throughout the United States and in selected international markets.
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