Browsing articles tagged with " bac"
Last night, Brian Moynihan, CEO of Bank of America was on Charlie Rose and the interview made me want to buy shares of Bank of America. Why?
Well, the worst is over for Bank of America as far as legal issues. Of course, not entirely but for the most part, as they've paid out somewhere in the range of $30 billion. Plus, the economy in the United States is on the mend and housing has certainly bottomed out and is now growing. But it was just the way Moynihan talked about Bank of America and all that he's been
When you consider the fact that Bank of America has lost nearly $100 billion on their Countrywide Financial purchase
, it's sort of a laugh that they then had to pay a fee of $335 million
to settle allegations that they discriminated against black and Hispanic borrowers.
What's more, it's a laugh since they were trying to dupe all customers more or less. They didn't care what you looked like they were ready to loan you money to buy a house since the housing market was only going to go up and up and up.
BofA has already
From the horses mouth to your ears and eyes, Bank of America CEO Brian Moynihan talked to the great Maria Bartiromo on CNBC's Closing Bell. Moynihan is in an unenviable position to say the least. In charge of the ugly step child of the mortgage crisis with lawsuits aplenty to deal with.
However, he seems very calm, in charge, and ready to keep fighting for his company. What gets me though is how it's in the best interest of the government, the country and the economy on the whole for Bank of America to succeed and survive. When you talk about
On Mad Money tonight Cramer was tight lipped in many ways regarding Bank of America's stock, especially for Cramer, who's usually full of excitement and energy when he makes a call on a stock. One could even say he was curt and to the point. On the Lightning Round Cramer had this to say about BAC:
"Don't like financial stocks right now, including BAC."
For a stock he touted as one to own maybe just four or five months ago, Cramer has since come to his senses and reversed course on Bank of America. With all of the CountryWide issues and lawsuits
Bank of America, the largest bank in the United States, just can't escape their purchase of CountryWide and the rest of their bad mortgage loans. The stock of BofA (BAC) hit another 52 week low of $8.03. $BAC Just this week the stock is down 16% and for the year it's down 40%. Painful if you're long, lovely if you've short.
Now their settlement over a good number of these loans for $8.5 billion is going to look more like $20 billion
. And it also looks like Fannie Mae and Freddie Mac are asking for more money
The big question for Bank of America is whether or not they have to issue more shares to raise more capital. And that's the question that seems to have been asked for the last year. Now, after their most recent quarter, it's still the biggest question. CEO said No, which for many investors means Yes. The stock hit a new 52 week low of $9.40 per share. These new 52 week lows seem to be happening every day this week.
From the WSJ
Bank of America Chief Executive Brian Moynihan remained adamant Tuesday the bank has no intention or need
Bank of America (BAC) is at a new 52 week low today, touching $10.31, after new worries arose about how much capital they have to withstand mortgage problems. Coupled with the increased mortgage related lawsuits, billion dollar settlements, and a weakening economy, many are saying Bank of America will have to raise more capital, issue more shares, before it's too late.
In the past, during the 2008 crisis, some banks failed to issue new stock early on, only to have to raise capital at a lower share price. Bank of America might have to act now, or this
Bank of America (BAC) is close to a $8.5 billion settlement with a host of big time mortgage backed securities investors. Shares are up over 3% in after hours trading on the news. This could help all the financial stocks tomorrow. And, maybe, help turn the banks stock around heading into their earnings season. They have been perhaps the most hated stocks in the market for some time now. Is there hope for them yet? We'll see.
Here's the story from the WSJ
A deal would end a nine-month fight with a group of