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Bank of America Corporation (BAC)

  • 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.
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  • 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.
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  • 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)
  • 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.
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  • 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.
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  • 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.
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  • Feb. 3, 2012, 12:22 PM
    NY AG Schneiderman slaps a new lawsuit on Bank of America (BAC), JPMorgan (JPM), and Wells Fargo (WFC), charging them with "deceptive and fraudulent" foreclosure proceedings through MERS - the national mortgage electronic registry. "The banks created the MERS system as an end-run around the property recording system," he says. (PR)
  • Feb. 3, 2012, 6:37 AM
    Bank of America (BAC) wins a dismissal in a lawsuit filed by Allstate (ALL) over losses incurred from mortgage-backed securities purchased from BofA-acquired Countrywide Financial. The judge's ruling allows Allstate to refile a narrower case, but it gives BofA a stronger position if settlement negotiations commence.
  • Jan. 31, 2012, 11:31 AM
    DoubleLine's Bonnie Baha compares the big banks to the legacy airlines, suggesting they have yet to find a sustainable profit-making model in a new world. Focus on the balance sheet - the "good news" of stronger capital ratios - is misplaced, she contends. "Deleveraging ... is not a business model."
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  • 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.
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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.