Bank of America stock was down 1% to $15.54 today (Tuesday) after shareholders voted to keep Chief Executive and Chairman Brian Moynihan in his dual role with the company.
Bank of America Stock
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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.
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.
Wall Street's focus has shifted from global woes to earnings as Q3 earnings season kicks into high gear.
This week brings a number of reports from all sectors. Initial earnings reports have so far impressed, with 70% of companies trumping forecasts, according to FactSet.
DJIA Today, Aug. 20, 2014: U.S. stocks were up Wednesday after the release of minutes from the most recent Federal Open Market Committee meeting in July. According to the minutes, the consensus view of the FOMC is that interest rates won't begin to move higher until at least mid-2015.
Dow Jones today, August 13, 2014: U.S. stocks were in the red on Tuesday as concerns about the European markets affected investor sentiment. Geopolitical hot spots in Ukraine and in the Middle East have led to an increased emphasis on reducing exposure to risk.
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.
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.
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.
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.
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."