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Bank of America Corporation (BAC)

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  • Feb. 9, 2012, 11:07 AM
    Shares in the four listed banks involved in the national mortgage settlement aren't showing a huge reaction to official news of the deal, but that's probably because it's been coming for months, and also because it doesn't put a cap on banks' legal liabilities. BAC +1.1%, WFC -0.4%, JPM -0.7% and C -0.2%
    | 6 Comments
  • Feb. 9, 2012, 10:40 AM
    The national mortgage settlement will be $25B and not $26B - as reported - according to the official Web site. California will get $18B, says California AG Kamala Harris, who's tactic of leaving the talks for a few months and then coming back in at last moment appears to have paid off.  (previously I, II)
    | 19 Comments
  • Feb. 9, 2012, 10:22 AM
    The $26B settlement for foreclosure abuse includes 49 states - Oklahoma still holds out - and will enable 1M homeowners to reduce their deb t or refinance at lower rates. $5B will go to states and federal authorities, $17B to homeowner relief, $3B to refinancing and $1B to the FHA. The total could rise to $45B if all 14 major servicers participate.
    | 2 Comments
  • Feb. 9, 2012, 6:06 AM
    The SEC reportedly plans to send Wells notices to several major banks over mortgage-related bonds linked to the financial crisis. It's unclear which banks are being targeted, though sources say the focus of the civil investigation includes BofA (BAC), Citigroup (C), Deutsche Bank (DB) and Goldman Sachs (GS).
    | 4 Comments
  • Feb. 9, 2012, 5:20 AM
    Officials are on the verge of announcing an agreement worth as much as $26B with the nation's top mortgage banks, with an announcement possible as soon as this morning. The five banks involved are BofA (BAC), Ally Financial, JPMorgan (JPM), Wells Fargo (WFC) and Citigroup (C). (see also)
    | 3 Comments
  • Feb. 8, 2012, 2:16 PM
    Fairholme Funds' Bruce Berkowitz reaffirms his confidence in Bank of America (BAC +3.3%), saying "it doesn’t get any better when it comes to value investing" in noting tangible book value of $12-$13/share and earnings power of $4/share. On ongoing BofA litigation, he says the bank already has reserved for most of any settlement money. (earlier)
    | 13 Comments
  • Feb. 8, 2012, 12:16 PM
    Bank of America (BAC +1.6%) shares hit $8 for the first time since Sept. 1, as the bank’s improving credit position likely boosts investor confidence. The spreads on the bank’s credit default swaps have narrowed considerably since BofA’s earnings report on Jan. 19.
    | 3 Comments
  • Feb. 8, 2012, 4:51 AM
    The combined costs of problematic mortgages and foreclosure abuse at five leading banks exceed $72B, a Bloomberg analysis shows. BofA (BAC) has the biggest bill, $41.8B, with the other banks being Wells Fargo (WFC), Citigroup (C), JPMorgan (JPM) and Ally. "It’s a colossal failure of basic banking," says analyst David Knutson.
    | 4 Comments
  • Feb. 7, 2012, 3:01 PM
    New York AG Eric Schneiderman will hold a media call at 6 PM ET. CNBC reports he is expected to join the multi-state foreclosure fraud settlement. Keep your friends close, but your enemies closer - to this point Schneiderman has resisted Administration attempts to neatly wrap this up, but the President days ago named him co-chair of a MBS working group investigating fraud.
    | 1 Comment
  • Feb. 6, 2012, 2:14 PM
    The sale of MBNA Europe, Bank of America’s (BAC +0.3%) U.K. and Ireland credit card business, reportedly has been abandoned; the reasons are unclear, although new capital requirements by European regulators may have rendered the credit card business less attractive to potential acquirers.
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  • Feb. 6, 2012, 8:50 AM
    The U.S. S&P financials sector has begun trading above book value for the first time since July, a sign of a turn in investor sentiment towards banks. The rise in price to book value conceals a wide variation: Wells Fargo (WFC) trades at a ratio of 1.21, but Citigroup (C) and Bank of America (BAC) still linger at ratios of 0.53 and 0.36, respectively.
    | 1 Comment
  • Feb. 6, 2012, 8:18 AM
    More details on the pending foreclose deal (previous: I, II): Though HUD Secretary Shaun Donovan still expects a final agreement valued as high as $29B between banks and states to be reached within days, California still hangs in the balance. If state AG Kamala Harris wins too many lush concessions, other states may back away from the table and kill the deal.
    | 1 Comment
  • Feb. 6, 2012, 4:37 AM
    As part of any settlement to resolve foreclosure abuse, investors in mortgage bonds will be forced to write down up to $40B for distressed homeowners. The Obama administration plans to use the threat of litigation against large institutions to obtain additional aid for struggling borrowers. (see also)
    | 4 Comments
  • Feb. 6, 2012, 4:24 AM
    It's taken a year, but states and five banks are on the cusp of finalizing a $25B deal over problematic foreclosure practices after California returned to negotiations following a four-month absence and New York - another hold-out state - signaled it could support an agreement. State AGs must indicate today whether they will sign on to the deal.
    | 1 Comment
  • Feb. 3, 2012, 5:44 PM
    Bank of America (BAC) says it is weighing the sale of all its office properties except two - its Charlotte corporate center and NYC's Bank of America Tower - as part of its effort to cut costs. BofA owned or leased ~120M sq. ft. in 26,910 locations at the end of 2010, mostly in the U.S.
    | 1 Comment
  • Feb. 3, 2012, 1:12 PM
    Bank of America (BAC +4.1%) more than doubles the maximum consideration payable in its debt tender offer to $3.5B from $1.5B, after saying the offer was oversubscribed.
    | Comment!
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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.