Bank of America Stock

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Big Bank Earnings are Already Messing Things Up for the Market?

I love this time of year. I mean it! The first day of the first earnings season of the year is magical. It’s also one of the most predictable, as the Big Banks almost always determine the direction that the market will trade for the next three weeks, all in the first two days. This […]

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BAC Dividend Hike on Hold After Stress Test Shows "Weakness"

BAC dividend

Results of the U.S. Federal Reserve's so-called stress test were released Wednesday - and Bank of America Corp. (NYSE: BAC) passed only provisionally. As such, a long-awaited boost to the BAC dividend remains on hold.

In total, 28 U.S.-based banks passed the Fed's annual regulatory test.

Here's a look at BofA's stress test miss - plus 10 notable dividend hikes and share buybacks announced by banks that fared better this time...

166 Trillion Reasons Why Bank Stocks Are So Cheap

My continuing search for sectors of the stock market that are trading cheaply and offer the potential for gain has led me to a controversial slice of the market: bank stocks.

Looking at the "Big Four" in the U.S. banking sector, it's easy to conclude that the sector is undervalued...

But that conclusion may be a bit misleading.

Make no mistake - by traditional measures banks look cheap, and their stocks could do fine until the next financial crisis.

But that's the problem. Looking at banks that way ignores the elephant on their balance sheets, and the potential damage to our portfolios.

Here's what's really driving this critical economic sector into a "buyer beware" investment category...

Bank of America (NYSE: BAC), the Department of Justice, and Subprime Auto Loans

BAC

Bank of America Corp. (NYSE: BAC) is in tentative talks with the U.S. Department of Justice to pay between $16 billion to $17 billion for its part in selling shoddy mortgages, being a Too Big to Fail bank that wasn't allowed to fail but now has to pay the piper.

Today, I'm going to tell you the story behind this, and a story about subprime auto loans.

And along the way you'll even get stock pick…

Bank of America (NYSE: BAC) Stock Mostly Flat as BofA Nears $16.5 Billion Settlement

BAC stock

Bank of America Corp. (NYSE: BAC) stock rose slightly Thursday morning by 1% to $15.44 on news the bank is near a more than $16.5 billion settlement over mortgage-backed securities that helped ignite the 2008 financial crisis, but BAC stock has since given back those gains in afternoon trading.

Here’s a look at the events leading up to what could be the largest federal settlement to date in the history of corporate America…

Bank of America (NYSE: BAC) Rounds Out Big Bank Earnings - Here's What We Know

Bank of America Corp. (NYSE: BAC) reported Q2 earnings Wednesday that were dragged down by mounting litigation costs in addition to a decline in mortgage originations.

Second-quarter earnings from big banks have so far mostly surpassed estimates, but investor reactions have been mixed.

Wednesday also brought numbers from some major regional banks. Let’s first look at how BofA fared and how reported Q2 earnings affected BAC stock today…

Mortgage Settlement Just the Start of Trouble for Bank of America (NYSE: BAC) and Friends

The biggest U.S. mortgage lenders, including Bank of America Corp. (NYSE: BAC), finally reached a $25 billion mortgage settlement to help homeowners - but the banks still face years of legal battles and billions of dollars in costs.

The provisions to the mortgage settlement include:

  • $5 billion total in cash penalties, payable to borrowers, states, and the federal government.
  • $20 billion in additional aid, through reducing homeowners' loan balances, and refinancing for underwater homeowners who are current on their loans.
Bank of America will pay an additional $1 billion to settle claims that it inflated appraisal prices from 2003-2009.

The multi-billion dollar mortgage settlement ends state and federal investigations into improper foreclosure procedures (like robo-signing), but banks can still get hit with criminal enforcement actions due to lending practices and mortgage-related securities.

"It's a big check with narrow immunity," Paul Miller, an analyst with FBR Capital Markets and a former Federal Reserve examiner, told Bloomberg News. "You get the state attorneys general off your back, but you're not getting immunity from securitizations, which could come with their own steep cost down the road."

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