Nov. 21, 2013, 4:05 PM
- It's a milestone of sorts for Bank of America (BAC +2.9%) and its CEO as the stock for the third session in a row trades above the level it was at the day before Brian Moynihan took over on January 1, 2010.
- Unlike some other bank bosses (Jamie DImon) Moynihan pursued a strategy of getting lawsuits out of the way and not speaking out against waves of new bank regulations (word is, it's Moynihan, not Dimon, who gets to sit next to the President now at occasional banker/WH get-togethers).
- Following Moynihan taking over in 2011, the stock rose to near $20 per share before closing the year closer to $5. Today's close: $15.56.
- The TARP warrants (A-series) closed the session up 3.8% at $6.54.
Nov. 8, 2013, 10:41 AM
- Up sharply as interest rates fly higher (the 10-year is up 15 basis points to 2.75%) are the life insurers - all of whom have had their investment returns more than a little constrained by puny yields. IAK +2.4%
- MetLife (MET +5.9%), Prudential (PRU +4.5%), Lincoln National (LNC +6.8%), Hartford (HIG +3.1%).
- Also set to benefit from a steeper yield curve (if we're to believe their models) are the banks, and they're leading the S&P 500 higher. The TBTFs: Bank of America (BAC +3.3%), JPMorgan (JPM +3.1%), CItigroup (C +3.3%), Wells Fargo (WFC +2.6%). The regionals (KRE +3.4%): Huntington (HBAN +2.6%), Regions (RF +4.2%), PNC (PNC +2.8%), FIfth Third (FITB +3.4%), First Niagara (FNFG +2%), Keycorp (KEY +3.5%), Zions (ZION +4.1%), Comerica (CMA +3.1%).
- The XLF +1.9%.
- FInancial sector ETFs: FAS, XLF, FAZ, UYG, KRE, KBE, VFH, IYF, KIE, SEF, IAT, IAI, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, RWW, FINU, RYF, KRU, KBWR, PSCF, KBWP, KBWI, KRS, FINZ, FNCL
Sep. 23, 2013, 7:36 AM
- Citigroup (C) slips 1% in the premarket after its weekend "pre-announcement" of a big fall in FICC revenue in Q3. The bank had been hoping to get bailed out by a big September, but the Fed's non-taper last week squelched the chance of major portfolio moves by clients.
- Anybody paying attention surely noticed last week's evaporation of profit at Jefferies (now owned by Leucadia) as fixed-income trading revenue essentially disappeared.
- Deutshce Bank (DB) is expected to soon be out with a warning similar to Citibank's. Barclays (BCS) and Credit Suisse (CS) have already waved their own red flags over this issue.
- Not yet heard from are Goldman (GS), Morgan Stanley (MS), JPMorgan (JPM), and BofA (BAC), but Goldman is also off nearly 1% premarket.
Sep. 12, 2013, 5:37 PM
Jun. 21, 2013, 11:54 AM
A check of the TBTFs finds Wells Fargo (WFC +0.9%) the only gainer amidst a floated report the Fed and FDIC are weighing a doubling in the "simple leverage ratio." Wells already exceeds the 6% proposed ratio, but presumably BofA (BAC -2.8%), JPMorgan (JPM -1.3%), Citigroup (C -4%), Goldman (GS -1.7%), and Morgan Stanley (MS -3.1%) would need to halt or pare back dividends and buybacks should the rule be implemented. The financial SPDR (XLF -1.4%).| Jun. 21, 2013, 11:54 AM | 8 Comments
May 6, 2013, 12:54 PMMore on the BofA/MBIA settlement: Bank of America (BAC +4%) will pay MBIA's mortgage insurance arm about $1.6B plus some IOUs, bringing the total amount to $1.7B, reports the WSJ. Additionally, the bank will take about a 5% stake in the holding company, MBIA (MBI +41.9%). It's a win-win as MBIA Insurance gets a lifeline and BofA removes the potential of a far larger award at trial. Congrats to BTIG's Mark Palmer and keen bloggers like Christian Herzeca who recognized MBIA's legal "loss" last week as a big push for BofA to get this thing settled. | May 6, 2013, 12:54 PM
May 6, 2013, 12:16 PMMBIA (MBI +40.7%) soars on a rumored settlement with Bank of America (BAC +3.2%) over mortgage putback issues. BofA will reportedly take a 5% stake in MBIA, paying $1.65B along with a $500M credit line. | May 6, 2013, 12:16 PM | 7 Comments
Apr. 30, 2013, 11:54 AM
MBIA (MBI -5.8%) investors are disappointed at not winning summary judgement in the case against Bank of America, but the ruling as a whole sends "a very strong message to BAC about how difficult it would be for it to win at trial," writes Mark Palmer. He still expects BofA to cut a deal either out of self-interest or after being forced to the table by regulators. MKM Partners agrees and maintains its Buy rating and $18 price target.| Apr. 30, 2013, 11:54 AM | 2 Comments
Apr. 29, 2013, 7:49 PMMBIA (MBI) sinks 5.5% AH after it fails to win summary judgement against Bank of America's (BAC) Countrywide unit in a lawsuit over whether the bank breached its obligations to repurchase loans. Attorney Christian Herzeca notes the judge found each point of law in MBIA's favor, but as "sufficient facts remain in dispute," a trial is necessary. | Apr. 29, 2013, 7:49 PM | 1 Comment
Apr. 23, 2013, 8:13 AM
Bank of America (BAC) gains 1.4% in premarket trade after an upgrade to Buy with $16 price target (from $13) at Morgan Stanley. The team expects BofA to deliver on significant expense cuts over coming quarters while significant litigation risk largely evaporates by 2013's end.| Apr. 23, 2013, 8:13 AM | 3 Comments
Apr. 18, 2013, 10:28 AM
Bank of America's (BAC -3.8%) price target is bumped $0.50 to $12 by Nomura's Glenn Schorr, though he doesn't seem too excited about the stock. "The upside remains limited in the near term and the earnings ramp will be gradual (revenues aren't exactly booming." Scotiabank maintains BofA a Buy with $15 price target based on the bank's strong capital position. The two-day loss thus far is 8.3%.| Apr. 18, 2013, 10:28 AM | 2 Comments
Apr. 17, 2013, 9:21 AM
Competition to book loans? Speaking on the earnings call, Bank of America (BAC) CFO Bruce Thompson says the bank is closing loans at wider spreads in Q1 than it was last quarter. Litigation costs were $900M, or $0.06/share in Q1 (vs. earnings of $0.20). The bank estimates (presentation slides) recent settlements bring to about 80% the resolution of all Countrywide-related claims. Shares -2.9% premarket.| Apr. 17, 2013, 9:21 AM
Apr. 17, 2013, 7:18 AM
Apr. 2, 2013, 11:50 AM
Immunomedics (IMMU +1.2%) moves up today after saying it's reached a $16.7M settlement through securities watchdog FINRA with its former broker Bank of America (BAC). The settlement resolves allegations the drug company had made related to investments in auction rate securities, for which it accused BAML of making false representations or omissions.| Apr. 2, 2013, 11:50 AM
Mar. 14, 2013, 5:53 PM
Mar. 14, 2013, 5:14 PM
After hours movers in the banks: JPM -2.5% and GS -2.1% after the two had their capital proposals approved but were asked to submit new plans "to address weakness in their capital planning processes." WFC +0.4%, BAC +3.8% after no dividend hike, but a whopping $10.5B in share repurchases and redemption of high-yielding preferreds. Morgan Stanley +0.9%. The XLF +0.1%.| Mar. 14, 2013, 5:14 PM | 18 Comments