Bank of America Corporation

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  • Sep. 3, 2015, 12:10 PM
    • "Do I need higher rates to buy Bank of America (BAC +1.6%)," ask Morgan Stanley's Betsy Graseck and Manan Gosalia. "No," they say, at least not at the current stock price.
    • Forgetting higher rates, accelerating loan growth coupled with strong fee growth should lift revenues 3-5% Y/Y in 2016-17. Assuming a flat core expense ratio of 60% means another $0.07-$0.21 to EPS, or $2 to the stock price. And expense management - which BofA continues to work hard on - could mean even more upside to earnings.
    | Sep. 3, 2015, 12:10 PM | 10 Comments
  • Sep. 1, 2015, 8:05 AM
    • The country's two largest pension funds - the California Public Employees' Retirement System and the California State Teachers' Retirement System - will vote against a measure allowing CEO Brian Moynihan to retain the chairman spot at Bank of America (NYSE:BAC).
    • The two roles have "inherent conflicts" requiring them to remain separate and independent, say the funds in a letter to the bank's lead independent director Jack Bovender. The funds also note continuing underperformance of the stock price since Moynihan took the CEO role in 2010, struggles with the annual stress tests, and "sub-par engagement" with investors. “Given these missteps, we do not believe now is the time to reduce oversight of management by combining the roles of CEO and chair.”
    • Source: Bloomberg
    • Continuing his campaign against allowing Moynihan to serve in the two roles, Mike Mayo brings a megaphone onto CNBC. A "yes" vote on Sept. 22 - allowing Moynihan to retain both spots - could put a regulatory target on the industry's back (surely he means another regulatory target).
    • Previously: WSJ: Labor group urges vote against Moynihan as chairman (Aug. 28)
    • Previously: Mayo unloads on BofA over chairman/CEO vote (Aug. 20)
    | Sep. 1, 2015, 8:05 AM | 25 Comments
  • Aug. 31, 2015, 11:10 AM
    • Sell-side dip buyers rushed into Bank of America (BAC -0.9%) last week with five analyst upgrades. Notching three upgrades each were Abercrombie & Fitch (ANF +2.6%) and Regions Financial (RF -0.9%) - Regions also scored an upgrade to Strong Buy this morning from Raymond James.
    • KBW's Christopher Mutascio - who upgraded BofA to Outperform with $20 price target - had been waiting for a pullback to get aggressive. He's pleased some of the banking sector's momo investors - in because they were sure rates were headed higher - have vacated.
    • Also upgrading Bank of America: UBS to Buy, with $20 PT up from $18; Macquarie to Neutral; Baird to Buy with $18 PT; Bernstein to Outperform with $19 PT.
    • Source: StreetInsider
    | Aug. 31, 2015, 11:10 AM | 10 Comments
  • Aug. 28, 2015, 12:51 PM
    • CtW is an advocate for union-affiliated pension funds holding roughly 21M shares (0.2% of the total) of Bank of America (BAC -0.5%), and plans sending a letter to shareholders today arguing for an independent chairman.
    • The board, says CtW, showed "a shocking lack of awareness" towards shareholders for making CEO Brian Moynihan chairman in the first place.
    • The vote is set for Sept. 22.
    • Previously: Mayo unloads on BofA over chairman/CEO vote (Aug. 20)
    • Previously: Two big tests on tap for BofA's Moynihan (Aug. 19)
    | Aug. 28, 2015, 12:51 PM | 33 Comments
  • Aug. 28, 2015, 11:10 AM
    | Aug. 28, 2015, 11:10 AM | 122 Comments
  • Aug. 27, 2015, 10:06 AM
    • A rare growth business for Wall Street banks has been loans backed by investment portfolios, but with margin calls being issued this week, profits could take a hit if clients pull back from borrowing.
    • Morgan Stanley (MS +1.6%) had $25.3B in securities-based loans outstanding as of June 30, up 37% year-over-year. Bank of America (BAC +0.2%) had $38.6B of the loans, up 14.2%. Wells Fargo (WFC +1.1%) had $59.3B, up 16%.
    • The amounts are small compared to overall bank lending, but change comes at the margin, and the largest brokerage firms have reported higher securities-based loan balances each quarter for more than two years.
    • Look for profits at bank wealth-management units to decline in coming quarters, says Portales Partners' Charles Peabody, in part thanks to declines in securities lending.
    • Source: WSJ
    | Aug. 27, 2015, 10:06 AM | 8 Comments
  • Aug. 26, 2015, 7:22 PM
    • Fidelity Investments is shopping around for better terms for a very popular and highly rated cash-back credit card, as it considers dropping American Express (NYSE:AXP) and Bank of America (NYSE:BAC) as its partners, Bloomberg reports.
    • Visa (NYSE:V) and MasterCard (NYSE:MA) are wooing the No. 2 mutual fund provider, hoping to replace American Express on the Fidelity Investment Rewards American Express card, which routes 2% of purchases into a variety of brokerage, cash-management and savings accounts.
    • A breakup would be the most recent blow to growth for AmEx, which is already splitting with Costco and JetBlue on their partner cards. Global Network Services -- where other banks issue AmEx-branded cards -- is the fastest-growing part of spending on AmEx's network.
    • Co-branded cards now account for about 30% of all transactions.
    • After hours: AXP -0.4%; BAC +0.2%; V +0.4%; MA +0.3%.
    | Aug. 26, 2015, 7:22 PM | 36 Comments
  • Aug. 25, 2015, 11:23 AM
    • "Like the basketball player LeBron James, [JPMorgan Chase] is good at both offense and defense,” CLSA analysts Mike Mayo and Chris Spahr write as they upgrade JPM shares to Buy from Outperform with a $78 price target.
    • For defense, JPMorgan (JPM +4.3%) has "a balance sheet that is the most resilient since it has been in its current form, the most stable earnings of U.S. global banks for the past decade, and a dividend level vs. the 10-year that implies stock outperformance 85% of the time," CLSA says.
    • For offense, JPM "is a unique self-help story given tailwinds from expense savings" and has "historically gained market share in tougher environments."
    • Banking shares are broadly higher but the upgrade seems to be giving JPM an extra boost; three analyst upgrades appear to be helping Bank of America (BAC +5.2%) in similar fashion.
    | Aug. 25, 2015, 11:23 AM | 9 Comments
  • Aug. 25, 2015, 9:15 AM
    • Bank of America (NYSE:BAC) +6.3% premarket as the stock market is poised for an early rebound from yesterday's losses and BAC shares are upgraded to Outperform from Market Perform with a $19 price target at Bernstein.
    • The selloff provides a more attractive entry point to recovering a "franchise with longer term potential to benefit from higher rates, improved operating leverage, and expanding capital return," the firm writes.
    • BAC also is upgraded to Outperform from Neutral at Baird, which says steady growth in tangible book value should drive appreciation for the shares until the interest rate and growth outlook improves, and upgraded to Neutral from Underperform at Macquarie.
    • Earlier: BofA upgraded at KBW, which sees cheap bank with limited China exposure (Aug. 25)
    | Aug. 25, 2015, 9:15 AM | 7 Comments
  • Aug. 24, 2015, 11:15 AM
    • Bank of America (BAC -3.5%) is sharply lower despite getting upgraded to Outperform from Market Perform with a $20 price target at KBW, which believes the hit bank stocks have taken due to the “lower interest rates for longer” sentiment is not all negative, given that there would now be a decline in momentum investors who were buying bank stock merely based on rising rates.
    • The firm says BAC shares have ~26% upside potential, the second highest upside of the 20 large regional/universal banks in its coverage universe, and it raises its annual EPS estimates through to 2017 to $1.48, $1.60 and $1.80 from $1.30, $1.50 and $1.73, respectively.
    • BofA has limited exposure to the Chinese market, KBW notes, comprising less than 1% of the bank’s balance sheet as of Q2 2015.
    | Aug. 24, 2015, 11:15 AM | 2 Comments
  • Aug. 20, 2015, 3:50 PM
    • "The timing of the meeting (Sept. 22) is hurried in the midst of a sudden change in CFO, without a full year of financials, and without a clean full-year Fed stress test," says CLSA's Mike Mayo. He notes this "special" meeting is off-cycle from the spring annual meeting season when proxies are typically reviewed, thus reducing the degree of attention.
    • "Further, the move by the board that unilaterally reversed a prior shareholder vote could taint the industry and arm critics who argue that the industry cannot govern itself."
    • Mayo's sentiments aren't surprising or even unusual, but for even better entertainment purposes, they come alongside his annotated version of Bank of America's (BAC -3.9%) proxy.
    • Previously: Two big tests on tap for BofA's Moynihan (Aug. 19)
    | Aug. 20, 2015, 3:50 PM | 64 Comments
  • Aug. 19, 2015, 10:09 AM
    • A shareholder vote set for Sept. 22 will decide whether Brian Moynihan can keep both the CEO and chairman titles at Bank of America (BAC -0.8%), and one week later the bank's resubmission of its capital plan to the Fed is due.
    • "If they fail this time, I'd call for his head," says Cougar Capital's Buzzy Geduld, an owner of 2.5M shares of the stock. "At the very minimum, you split the CEO and chairman roles."
    • Moynihan is deeply involved in the resubmission, reports Bloomberg, leading weekly steering meetings on the project. The bank is spending hundreds of millions overhauling data systems, rebuilding databases, and enhancing controls.
    • One worry: Regulators haven't specified what they want from the bank, leaving the executive team in the dark about exactly what will get a thumbs up.
    • Scoreboard: BofA is lower by 1.1% YTD versus the 5.5% gain for the 24-company KBW Bank Index. The stock is higher by 17% since Moynihan took over in 2010 versus an 84% gain for the KBW.
    • In other news, the bank today named co-heads of its healthcare investment banking team in the Americas, with one of the new bosses being poached from Credit Suisse.
    | Aug. 19, 2015, 10:09 AM | 41 Comments
  • Aug. 3, 2015, 3:54 PM
    • Bank of America (NYSE:BAC) has hired away Richard Peacock from Goldman Sachs (NYSE:GS), to join its M&A group as a managing director, according to a memo obtained by The Wall Street Journal.
    • He'll join in October after a standard leave. Peacock most recently was head of Goldman's consumer investment-banking division.
    • Consumer and retail M&A has been picking up this year, up 52% Y/Y in the first half.
    | Aug. 3, 2015, 3:54 PM | 6 Comments
  • Jul. 31, 2015, 5:37 PM
    • Bank of America (NYSE:BAC) is likely to put shareholders to a vote this year to decide whether CEO Brian Moynihan keeps his title as chairman of the board, Reuters reports.
    • The bank had said that a vote wouldn't take place any later than its 2016 annual meeting, but didn't set specifics. Today's proxy filing sets a special meeting that a source says will come this year.
    • The date isn't set in pen yet because the SEC must review the proxy first, the source said.
    | Jul. 31, 2015, 5:37 PM | 46 Comments
  • Jul. 27, 2015, 6:57 PM
    • Some of the biggest and best known U.S. businesses join the Obama administration in trying to build momentum for a deal at the climate change summit in Paris later this year.
    • A dozen publicly traded companies - AA, AAPL, MSFT, BAC, BRK.B, KO, GM, GS, GOOG, PEP, UPS and WMT - committed to support a “strong" outcome in Paris, and made new pledges to take a variety of steps to tackle climate change.
    • For example, Alcoa says it will reduce absolute greenhouse gas emissions in the U.S. by 50% by 2025, and BRK plans to retire 75% of its coal-fueled generating capacity in Nevada by 2019.
    • In addition to company-specific goals, the White House says today's announcements total at least $140B in new low-carbon investment and more than 1,600 MW of new renewable energy.
    | Jul. 27, 2015, 6:57 PM | 272 Comments
  • Jul. 27, 2015, 10:25 AM
    • Bank of America (BAC -1.6%) looks to build its bonafides with the climate change crowd, boosting its current environmental business initiative to $125B from $50B in low-carbon business by 2025.
    • Today's announcement will be highlighted at a White House event in advance of climate change talks set for Paris later this year.
    | Jul. 27, 2015, 10:25 AM | 18 Comments
Company Description
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.