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Bank of America Corporation (BAC)

- NYSE
  • Today, 4:33 PM
    • Looking for some kind of growth wherever they can find it, banks are about to get their wish as Fair Isaac is set to launch a new credit scoring metric which should expand by tens of millions the field of those eligible to get credit.
    • The new score will pull payment histories for things like utilities to calculate credit scores for consumers who might otherwise not have one. Other things - like how often someone changes address - will be used to help calculate a score.
    • FICO and 10 unnamed credit card issuers have been testing the new score since November, and Fair Isaac intends to roll things out nationwide by year-end. Right now, about 15M of the 53M previously unscorable Americans can be scored using the new system.
    • Source: WSJ
    • Among those of interest: WFC, C, BAC, JPM, COF, DFS, AXP
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
    | 2 Comments
  • Mon, Mar. 30, 4:09 AM
    • Top European and U.S. banks axed 59,000 jobs last year as they restructured, cut costs and moved further into digital banking, Reuters reports.
    • The figure brings the total number of jobs lost across 24 banks in the last two years to 160,000.
    • Notables: Barclays (NYSE:BCS) shed 7,300 jobs last year due to a three-year plan to cut 19,000 staff; RBS (NYSE:RBS) slashed 10,000 employees as it sold overseas businesses and trimmed its investment bank further; JPMorgan (NYSE:JPM) and BofA (NYSE:BAC) also made substantial job cuts as they worked through troubled mortgages and refinanced loans at lower rates.
    | 23 Comments
  • Fri, Mar. 27, 11:40 AM
    • "There is evidence of diseconomies of scale," writes longtime Bank of America (BAC -0.6%) bear Mike Mayo, arguing the lender would be worth 25% more if broken up.
    • "We do not see the downside for investors in supporting greater transparency," says Mayo, applauding the SEC's forcing the bank to allow a vote on a proposal calling for the spinoff of its investment banking operation.
    • Mayo notes recent accountability issues like BofA being the only U.S. lender called out by the Fed in its stress tests this year, and last year's $4B accounting boner, after which the bank was forced to suspend its capital return plans.
    | 89 Comments
  • Fri, Mar. 27, 3:28 AM
    • Despite its revenues falling 6%, JPMorgan (NYSE:JPM) retained its crown as the top performing investment bank in 2014, according to industry analytics firm Coalition.
    • JPMorgan reaped $22B from investment banking last year, compared with $23.3B in 2013.
    • Other U.S. banks also continued to dominate top spots, with Goldman Sachs (NYSE:GS) coming second overall across investment banking, and Citigroup (NYSE:C) and BofA (NYSE:BAC) sharing third place with Deutsche Bank (NYSE:DB).
    | 2 Comments
  • Thu, Mar. 26, 4:37 PM
    • The big banks have had a rough start to the year, but surging trading volume in bonds, currencies, and commodities in Q1 could make for pleasant surprises when the lenders report quarterly results next month, writes John Carney.
    • The average daily trading volume across all U.S. bonds was up 10.6% Y/Y through the end of February, according to Sifma, with trading in corporate bonds up 18.1%, driven by a big rise in issuance. Trading in Fannie, Freddie, and Ginnie MBS was up 35.3% from a year ago.
    • Goldman Sachs (NYSE:GS) could be a particular beneficiary, as about 25% of its revenue is generated by FICC, and Credit Suisse sees the bank posting its first year-over-year increase in that unit's revenue since 2009.
    • Others of interest: Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JPMorgan (NYSE:JPM).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 5 Comments
  • Fri, Mar. 20, 12:21 PM
    • Stockholders (or groups of stockholders up to 20) who own stakes of 3% or higher for at least three years will be allowed to nominate directors, under changes to Bank of America (BAC +1.5%) bylaws announced today.
    • So-called "proxy access" is a hot new trend this year, and BofA is the latest large company to come along.
    • SEC Form 8-K
    | 9 Comments
  • Thu, Mar. 19, 1:56 AM
    • Bank of America (NYSE:BAC) must allow shareholders to vote on a proposal that calls for the company to consider spinning off its investment banking business, following a ruling from U.S. regulators stating it couldn't exclude the proposal from its corporate ballot.
    • The March 17 decision by the SEC will put the proposal on the bank's proxy statement, allowing shareholders to vote on it at BofA's annual meeting.
    | 31 Comments
  • Wed, Mar. 18, 2:41 PM
    | 11 Comments
  • Tue, Mar. 17, 11:10 AM
    • A possible harbinger of things to come next month when the big banks report Q1 earnings, profits at Jefferies plunged in FQ1 (ended Feb. 28), with FICC, capital markets, and investment banking particularly weak.
    • Previously: Poor results at Jefferies sinks Leucadia (March 17)
    • Jefferies parent Leucadia is lower by 3.7%. Goldman Sachs (GS -1.1%), Morgan Stanley (MS -0.9%), JPMorgan (JPM -1.2%), Citigroup (C -0.1%), Bank of America (BAC -0.8%).
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
    | 2 Comments
  • Thu, Mar. 12, 12:47 PM
    • Citigroup's (C +2.7%) $7.8B in buybacks was 10% higher than estimated by MKM analyst David Trone. Combined with the nickel dividend, that's total shareholder returns of $8.4B vs. his $7B expectation.
    • Bank of America (BAC -1%) - though given just conditional approval - is set for $4B in buybacks and a nickel dividend. That's a total return of $6.1B vs. Trone's $3.1B estimate. Trone notes the bank can proceed with its buyback prior to resubmitting plans.
    • JPMorgan's (JPM +1%) $6.4B buyback was shy of Trone's $7B estimate, but the 10% dividend increase was better than forecast. The total capital return of $12.9B vs. his $13.2B forecast is a "marginal negative."
    • The dividend hike to $0.65 at Goldman (GS +2.1%) beat Trone's expectation of $0.62. As for the buyback, Goldman's policy of not disclosing the amount remains in place.
    • Morgan Stanley's (MS +4.5%) capital return of $4.3B is more than double Trone's $1.9B estimate.
    • Source: Benzinga
    | 4 Comments
  • Thu, Mar. 12, 8:07 AM
    | 8 Comments
  • Wed, Mar. 11, 5:24 PM
    • There's no boosted capital return at Bank of America (NYSE:BAC), which holds its quarterly dividend at a nickel per share and the annual buyback pace at $4B after the Fed's CCAR.
    • The bank will need to submit an additional capital plan by the end of September to address the Fed's concerns over certain weaknesses in its capital planning processes.
    • Source: Press Release
    • Shares -1.4% after hours.
    • Previously: BofA must resubmit capital plan; Deutsche and Santander rejected (March 11)
    | 60 Comments
  • Wed, Mar. 11, 4:36 PM
    • Bank of America (NYSE:BAC) has deficiencies including loss and revenue modeling practices in its internal controls, says the Fed, requiring the bank to resubmit its capital plan before winning approval for boosted shareholder returns. The lender has until the end of September to address the Fed's concerns.
    • Santander (NYSE:SAN) has "widespread and critical deficiencies," and Deutsche Bank (NYSE:DB) has "numerous and significant deficiencies." We're talking about the U.S. units here, and the capital returns in question are back to the parents, not to shareholders.
    • CCAR results
    • BAC -1.25%, DB -1.2%, SAN -1% after hours
    | 72 Comments
  • Tue, Mar. 10, 10:39 AM
    • "Slowing earnings growth, deterioration in the quality of earnings, loan growth largely limited to low-yielding assets, continuing NIM pressure, loss absorbing capital issuance, and rising loan loss provision costs are some of the headwinds," says SocGen's Murali Gopal, downgrading Wells Fargo (WFC -1.9%) to Sell from Neutral.
    • The stock owes much of its recent move higher to expanding multiples, but Gopal sees little hope for further advance on that front.
    • "With the stock’s performance likely to be a function of earnings growth, and consensus forecasting 3% EPS growth in FY15, we recommend investors Sell the stock at current levels," says Gopal, who remains positive on the TBTFs in general, and suggests investors instead buy Bank of America (BAC -1.8%) and JPMorgan (JPM -1.7%).
    | 10 Comments
  • Fri, Mar. 6, 9:46 AM
    • A turnaround from the action earlier this year - financials (XLF +0.9%) are marching higher in early action as the averages slip, as nervous investors buy back in following the stress test results. Also helping are surging interest rates following the strong jobs number.
    • Looking at a pretty broad screen of bank names, just two - Goldman Sachs and Zions, both of which barely passed the stress test - are lower. Among the others: Bank of America (BAC +3.7%), JPMorgan (JPM +1.1%), U.S. Bancorp (USB +1.6%), Regions FInancial (RF +2.3%), KeyCorp (KEY +2.7%), PNC Financial (PNC +2.3%), BB&T (BBT +2.4%), Fifth Third (FITB +2.2%), Comerica (CMA +3.8%), BNY Mellon (BK +2.9%).
    • Among those starved for higher rates: MetLife (MET +3%), Prudential (PRU +3.3%), Lincoln National (LNC +4.1%), AIG (AIG +1.4%),  Hartford (HIG +2%), E*Trade (ETFC +3.9%), Schwab (SCHW +4.4%), Ameritrade (AMTD +4.3%).
    • Previously: Futures slip after jobs number as yields and dollar soar (March 6)
    • ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, KBWC, FINZ, KRS
    | 16 Comments
  • Thu, Mar. 5, 8:28 PM
    • The minimum Tier 1 common capital ratio for banks is 5%, according to the Fed, and here's how the 31 lenders stacked up under the central bank's severely adverse scenario vs. a year ago (h/t: WSJ):
    • Deutshce Bank (NYSE:DB): 34.7%, not tested a year ago
    • DIscover (NYSE:DFS): 13.9% vs. 13.2% a year ago
    • Bank of New York Mellon (NYSE:BK): 12.6% vs. 13.1%
    • American Express (NYSE:AXP): 12.5% vs. 12.1%
    • Northern Trust (NASDAQ:NTRS): 12.3% vs. 11.7%
    • State Street (NYSE:STT): 11.8% vs. 13.3%
    • Citizens Financial (NYSE:CFG): 10.7% vs. 10.7%
    • KeyCorp (NYSE:KEY): 9.9% vs. 9.2%
    • Capital One (NYSE:COF): 9.5% vs. 7.8%
    • PNC Financial (NYSE:PNC): 9.5% vs. 9%
    • Santander Holdings USA (SAN's U.S. unit): 9.4% vs. 7.3%; shares +0.8% after hours
    • BMO Financial (BMO's U.S. unit): 9% vs. 7.6%
    • Comerica (NYSE:CMA): 9% vs. 8.6%
    • Huntington Bancshares (NASDAQ:HBAN): 9% vs. 7.4%
    • HSBC North America (NYSE:HSBC): 8.9% vs. 6.6%
    • U.S. Bancorp (NYSE:USB): 8.5% vs. 8.2%
    • Regions Financial (NYSE:RF): 8.3% vs. 8.9%
    • Citigroup (NYSE:C): 8.2% vs. 7.2%
    • SunTrust (NYSE:STI): 8.2% vs. 8.8%
    • BB&T (NYSE:BBT): 8.1% vs. 8.4%
    • MUFG Americas Holdings (NYSE:MTU): 8% vs. 8.1%
    • Ally Financial (NYSE:ALLY): 7.9% vs. 6.3%
    • Fifth Third Bancorp (NASDAQ:FITB): 7.9% vs. 8.4%
    • Wells Fargo (NYSE:WFC): 7.5% vs. 8.2%
    • M&T Bank (NYSE:MTB): 7.3% vs. 6.2%
    • Bank of America (NYSE:BAC): 7.1% vs. 5.9%; shares +2.1% after hours
    • JPMorgan (NYSE:JPM): 6.5% vs. 6.3%
    • BBVA Compass (NYSE:BBVA): 6.3% vs. 8.5%
    • Goldman Sachs (NYSE:GS): 6.3% vs. 6.9%
    • Morgan Stanley (NYSE:MS): 6.2% vs. 6.1%
    • Zions Bancorp (NASDAQ:ZION): 5.1% vs. 3.6%; shares -1.7% after hours
    • The lenders were also informed today whether their capital return plans would put them below the Fed's 5% threshold, giving them a 6-day window with which to change those requests, if need be. Last year, both BofA and Goldman scaled back their dividend/buyback requests, allowing them to pass the CCAR. This year's CCAR results will be announced on Wednesday.
    • 2015 Stress Test Methodology and Results
    | 28 Comments
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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.