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does it post
Looks like more US macro BS to try and reignite the markets. Industrial production swings from negative to best in 4 years on ..., wait for it..., air-con sales! Hilarious. Time to sell all rallies until further notice. GLA. http://www.zerohedge.com/news/2014-10-16/industrial-production-beats-rises-fastest-rate-4-years-air-conditioning-demand
Bank of America Corp. (BAC) Director name: Mr Lionel L. Nowell Amount purchased: 3,930 @ $11.71 Value: $46,020
Bank of America Corp. (BAC) Director name: Mr Arnold W Donald Amount purchased: 3,930 @ $11.71 Value: $46,020
Top Director Buys Bank of America Corp. (BAC) Director name: Mr R David Yost Amount purchased: 20,000 @ $11.53 Value: $230,600
Positive Points: The bank's results were boosted by a lower provision for bad loans, which fell to $2.2 billion from $2.9 billion a year ago. In 2011, management launched a broad cost-cutting programme that aims to eliminate $8 billion in annual expenses by mid-2015. The bank has spent much of the last year working to slim down and rid itself of the heavy overhang of the US financial crisis. Now, with many of those efforts in place, investors are increasingly looking for signs of earnings power. Fees in the investment banking division jumped 58% from Q4 2011. The company continued to focus on strengthening its balance sheet by increasing capital and maintaining strong liquidity and reserve levels. Bank of America is one of the world's largest financial institutions and serves about half of American households. It is therefore seen as a good barometer of the health of the economy.
Negative Points: A provision of $2.7 billion relating to settlements with government backed mortgage company Fannie Mae, along with other provisions were taken. Bank of America previously agreed to pay $2.4 billion to settle claims that it hid crucial information from shareholders when it bought Merrill Lynch & Co. during the financial crisis. The bank has denied the allegations. The bank has a relatively high consumer credit exposure to credit cards and residential real estate. A sluggish economic recovery could slow the pace of credit card loss improvement and could also put additional pressure on the housing market. BofA is still recovering from the 2008 financial meltdown and its disastrous acquisition of troubled mortgage lender Countrywide Financial, which had resulted in lawsuits after the crash of the US housing market.
Financial Highlights: Net income dropped in the fourth quarter to $732 million, or 3 cents a diluted share, from $1.99 billion, or 15 cents, a year earlier Provision for bad loans fell to $2.2 billion from $2.9 billion a year ago For the full year, the company reported net income of $4.2 billion, or $0.25 per diluted share, compared to $1.4 billion, or $0.01 per diluted share in 2011.
Fourth quarter results: The announcement continued to see the company attempting to overcome earlier difficulties and acquisitions. As such, headline numbers saw the bank reporting declining profitability. A series of charges taken in order to clean up mortgage-related problems stemming from the financial crisis and its prior acquisitions of both Countrywide Financial and Merrill Lynch impacted. Shares for the bank declined in early trading. However, relative to the year-ago quarter, the underlying results were driven by improved credit quality across most major portfolios, increased sales and higher investment and brokerage income, along with expanded investment banking fees. For the full year, the company reported net income of $4.2 billion, or $0.25 per diluted share, compared to $1.4 billion, or $0.01 per diluted share in 2011. In all, management remains focused on extricating the bank from previous difficulties, whilst improving current performance. With the share price up over 75% over the last year
Bank of America has moved closer to returning capital to shareholders after last week unexpectedly reaching new international capital standards. Brian Moynihan, chief executive, has long promised the company will reap a "peace dividend" once BofA finishes dealing with the after-effects of the mortgage crisis which cost it tens of billions of dollars. Last week, BofA received a reprieve when regulators determined it would not have to hold as large a cushion of equity as expected, a ruling which could hasten the return of capital. BofA will still need to receive permission from the Federal Reserve before it can do so. It would be a significant change in fortune less than two years after the company took a $5bn capital infusion from Warren Buffett's Berkshire Hathaway to stem fears it was undercapitalized, The Financial Times says.
Positive Points: The bank has spent much of the last year working to slim down and rid itself of the heavy overhang of the US financial crisis. Now, with many of those efforts in place, investors are increasingly looking for signs of earnings power. Fees in the investment banking division jumped 17% from the second quarter and 44% from the third quarter of 2011. In addition, the bank increased both its deposits and its lending from the prior quarter. Deposits grew 2.7%, and lending increased 8%. Last year, the bank launched a broad cost-cutting programme that aims to eliminate $8 billion in annual expenses and 30,000 jobs. The company continued to focus on strengthening its balance sheet by increasing capital and maintaining strong liquidity and reserve levels. Bank of America is one of the world's largest financial institutions and serves about half of American households. It is therefore seen as a good barometer of the health of the economy.
Negative Points: Bank of America agreed last month to pay $2.4 billion to settle claims that it hid crucial information from shareholders when it bought Merrill Lynch & Co. during the financial crisis. The bank has denied the allegations. The bank has a relatively high consumer credit exposure to credit cards and residential real estate. A sluggish economic recovery could slow the pace of credit card loss improvement and could also put additional pressure on the housing market. BofA is still recovering from the 2008 financial meltdown and its disastrous acquisition of troubled mortgage lender Countrywide Financial, which had resulted in lawsuits after the crash of the US housing market.
Financial Highlights: Profits for the three months to the end of September were $340 million, down from $6.2 billion in the same period last year. Results from the third quarter of 2011 were flattered by a big gain from the sale of some of the bank's stake in China Construction Bank. Revenue fell 28% to $20.43 billion. Bank of America disclosed plans to settle litigation over its acquisition of Merrill for $2.4 billion.
Third quarter results: Bank of America registered a $340 million net profit, compared to a $6.2 billion profit in the same period a year earlier. Profits were impacted by a legal settlement and other previously disclosed charges. Last month, the company announced it would settle a legal dispute (a $2.4 billion claim) with shareholders who said the bank misled them about its purchase of Merrill Lynch, announced in 2008. The bank denied the allegations. Furthermore, the bank had already warned that it would incur a pre-tax loss of $1.9 billion relating to the company's debit valuation adjustments, (DVA) related to the bank's credit spreads, and a further $800 million due to changes in the UK corporate tax rate. More positively, fees from investment banking rose 17% from the second quarter enabling the bank to retain its position as No 2 in global investment banking fees taken. Global Wealth and Investment Management saw flows of $5.7 billion into assets under management, up 39% from the prior quarter.
Company overview Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle-market businesses, and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. On 15 September 2008, the bank announced its intention and successfully concluded the purchase of Merrill Lynch & Co Inc. in a deal worth approximately $50 billion. Bank of America Corporation is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange serving approximately 53 million consumer and small business relationships.
In a move to accelerate its cost-savings plan, Bank of America is considering the lay-off of 16,000 employees by the end of the year, according to a document given to top management, The Wall Street Journal reports. The job cuts are part of the bank's plan to become a better organized and less diversified entity that will take less risks and generate more revenue from existing customers. Most of the lay-offs will be produced in the retail division although some lay-offs may take place among less-experienced investment bankers. After closing 178 branches in 2011, Bank of America plans on closing another 200 in 2012 and closing the year with 260,000 workers. The company would no longer be the largest US banking employer as it would have a smaller staff than JP Morgan, Citigroup, and Wells Fargo.
Bank of America's shares trade on just 0.6 times its reported tangible book value of $13.22 a share; shares in rival Wells Fargo, by contrast, trade at a multiple of about 1.3 times. Its shares are also merely rated in line with those of struggling UK lenders, such as RBS and Lloyds , yet Bank of America has minimal exposure to the eurozone. All of which points towards the shares looking cheap........but always do your own research......
Bank of America is also insulated from the eurozone. Its exposure to Greece, Italy, Ireland, Portugal and Spain stands at just $9.6bn; by contrast, Barclays, for example, has £72.4bn at risk in those five nations. The bank is also increasingly well capitalised. Its ratio of tier-one common capital (basically equity) to assets, weighted for risk, rose 11.2 per cent from 8.2 per cent a year earlier. That leaves it among the best capitalised in the US - Wells Fargo's ratio stands at 10.1 per cent while JPMorgan's is 10.3 per cent But building that capital cushion has meant weak payouts for shareholders. No share buybacks are planned and the dividend is nominal. Management's efforts to grow the payout ended in failure in 2011's second half after regulators at the Federal Reserve Bank blocked the move - they prefer banks to retain capital. That said, shares in US banks aren't known for their generous dividends; even the fattest yield in the banking sector, on JPMorgan's shares, is only about 3 per cent. There's also the problem of pressure from the institutions that bought mortgage-backed bonds issued by US banks - they reckon they were mis-sold them. It's a problem for most US banks and Bank of America saw its buyback claims rise by over $6bn in the second quarter to $22.7bn. However, management reckons that most new claims relate to bonds, where the underlying borrowers made at least two years of payments before defaulting, indicating that the bank may not be at fault. Besides, past settlements have typically been between 6¢ and12¢ in the dollar, suggesting a manageable overall exposure.
Go back to 2008's financial crisis and Bank of America, weakened by the acquisition of Merrill Lynch, looked troubled - by spring 2009, it had taken $45bn (£28bn) of US government support. But, unlike UK banks that needed bailout cash, Bank of America had recovered sufficiently by the end of 2009 to repay US taxpayers. And progress has continued since then, leaving the shares, which still trade well below reported net tangible assets, with plenty of recovery potential. First-half results for 2012 certainly contained evidence of recovery. Bank of America turned a hefty $10.1bn pre-tax loss in the previous first half into a $3.9bn pre-tax profit, helped by a big improvement in credit quality. Provisions for credit losses fell 41 per cent year on year to $4.19bn and non-performing loans as a proportion of all loans fell to 2.87 per cent from 3.22 per cent a year earlier. Further progress is anticipated. Investment bank JPMorgan expects underlying pre-tax profit to rise from $639m in 2011 to $11.1bn and to then soar to $21.1bn in 2013. Even a $32bn slide in the size of the average loan book during the year to end-June to $907bn isn't so grim. Management is refocusing on core operations and over $50bn-worth of non-core assets have been offloaded since Brian Moynihan became the chief executive in 2010. He's also hacking at costs and expects $3bn of savings by mid-2015. The US economy may help, too. True, with 8.1 per cent of its workforce unemployed, it is hardly booming, but at least it's growing - and that's good news for credit demand and credit quality. In contrast to the recession-hit UK and eurozone economies, the US economy grew 1.7 per cent in the second quarter and the IMF expects 2.25 per cent growth in 2013. Admittedly, a combination of rising taxes and spending cuts due at the year-end - the so-called fiscal cliff - could undermine that. But policy makers may rethink those measures, while another dose of quantitative easing in the US, which may have been announced by the time you read this, would boost confidence
Hi I have been watching these for a while. I think we may see $6 soon and then Im in
....is anybody jumping in here? with -49,43% fall it´s bound to bounce back short-term or not?
KDOOR
Davy, BS ,NewJ you are famous name in lights tee hee
Its me nootame