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Bank of America Corporation (BAC)

  • Jan. 31, 2012, 10:42 AM
    Chris Whalen is betting, literally, on the small and midsized banks that eschew Wall Street via his new fund. The strongest banks, he says, are the ones without exposure to Wall Street; the big banks "are going to break up." In particular, Bank of America (BAC) has been permanently crippled by its exposure to troubled mortgage investments, he says, and would be worth more in pieces.
  • Jan. 30, 2012, 2:59 PM
    Domestic banks experienced somewhat stronger loan demand over the past three months, according to the Fed in its January 2012 Senior Loan Officer Opinion Survey on Bank Lending Practices. Commercial and industrial loan demand was solid from firms of all sizes, however demand from small firms rose to its highest level since 2005.
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  • Jan. 30, 2012, 10:48 AM
    While Goldman Sachs was raising Citigroup (C -1.7%) to Buy from Neutral, the firm also downgraded Bank of America (BAC -2.9%) to Neutral from Buy, believing it will be difficult for BofA to boost earnings power over the next 12-18 months as it also cuts costs. Goldman also hiked Morgan Stanley (MS -0.9%) to its Conviction Buy list while removing JPMorgan Chase (JPM -1.8%).
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  • Jan. 30, 2012, 6:13 AM
    Five U.S. banks - JPM, GS, C, BAC, and MS - have over $80B of exposure to the EU GIIPS, a NY Times analysis shows, although the number falls to $50B when the banks' CDS insurance policies are included. However, some market participants are skeptical that the CDS system will work properly during massive instability.
  • Jan. 30, 2012, 2:14 AM
    Bank of America (BAC) taps Christian Meissner to be the sole leader of its global I-banking, less than a year after Meissner was promoted to co-head the unit with two other executives. The bank is shaking up its I-banking after a rough Q4 which saw the unit's fees decline 35%.
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  • Jan. 27, 2012, 10:54 AM
    Arizona is the latest state to take aim at the mortgage modification practices of Bank of America (BAC). Bloomberg reports the bank negotiated at least 12 secret settlements with borrowers that include non-dispargement clauses. The AG's office is asking a court to block those parts of the settlements and require the bank to turn over all the agreements.
  • Jan. 27, 2012, 5:05 AM
    California turns down a reported $15B offer from five lenders over problematic mortgage practices, as the proposals did not contain "transparency, real relief for distressed homeowners and strong enforcement mechanisms." Other states might be unhappy that California was offered a guaranteed minimum while they weren't.
  • Jan. 26, 2012, 6:14 AM
    Banks could find their profitability hurt by the FOMC yesterday pledging to keep interest rates at minimal levels until 2014, as the policy makes it difficult for lenders to find investment with high enough yields to support their to support their net interest margins.
  • Jan. 25, 2012, 6:24 AM
    The World Economic Forum's annual meeting in Davos opens today, with over 2,500 business and political leaders set to attend. While there are calls for the breaking up of BofA (BAC), CEO Brian Moynihan says in Switzerland that the size and power of large banks reflects the magnitude of the economy they serve.
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  • Jan. 25, 2012, 6:05 AM
    A group of consumer advocates, academics and economists, led by consumer advocacy organization Public Citizen, plan to file a petition with the Fed and other regulators today to carve Bank of America (BAC) up into smaller, safer pieces. The petition will likely have minimal practical impact but is a dramatic criticism of regulators' failure to act.
  • Jan. 24, 2012, 3:35 PM
    Bank of America (BAC) eyes a piece of Groupon's (GRPN) business as it will test BankAmeriDeals - a service offering customers savings at retailers based on their spending patterns. Unlike Groupon, BofA will not receive payments from customers or merchants, instead hoping the service generates more account activity.
  • Jan. 24, 2012, 1:41 PM
    Bank of America (BAC) tells its investment bankers to expect a 25% cut in compensation, reports Bloomberg. This follows Morgan Stanley reportedly cutting its investment banker pay 20-30%, and Goldman's compensation costs falling 21% Y/Y.
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  • Jan. 23, 2012, 4:58 PM
    Bank of America (BAC) is moving forward with plans for the second stage of aggressive cost cuts, reportedly ~$3B in annual expenses inside its commercial banking, investment banking and wealth management businesses. The number hasn’t been finalized, and CEO Brian Moynihan said last week that it would take until April to do so.
  • Jan. 23, 2012, 11:59 AM
    Bank of America (BAC +2.9%) continues its surprising run, adding to its 31% YTD gain as it easily outperforms the broader market and other big banks. Evercore tries to explain, even as several analysts have hacked their target prices since last week's earnings report: “Seems like greater risk appetite to start new year, some better macro, and more comfort around BAC’s capital position.”
  • Jan. 22, 2012, 3:28 AM
    Five banks and government negotiators have agreed terms for a 25B+ settlement over inappropriate mortgage practices, the FT reports, adding to similar recent stories. The banks are BAC, JPM, WFC, C and Ally Fiancial, with the figure rising to $30B if others join in. A major question is whether California and New York will take part.
  • Jan. 19, 2012, 2:28 PM
    Better-than-expected results from BofA (BAC +3.3%) and Morgan Stanley (MS +5.9%) extend bank stocks' (XLF +1.1%) impressive January run, but they're clearing a significantly lowered bar. In July, the consensus saw Q4 financial sector EPS growth of 36.6%, by early October it was 26.6%, on Jan. 3 it was 10.1%, and as of yesterday it stood at 2.1%.
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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.