BAC-WT - Bank of America Warrants

[TorontoRaptorsFan]

That would be wonderful if Citi is approved for those 2 amounts.

[Grenville]

I worry BAC original capital plan got rejected based on the Fed's results from last week. My guess (hope I'm wrong) is they had to resubmit their plan and reduce the capital return or shift it more to buybacks versus dividends. Another result is that BAC was able to convince the Fed that their results were off last week and they can continue with their originally submitted capital plan.

[dcollon]

Fed objects to capital plans of Citigroup, HSBC, RBS Citizens, Santander, and Zions

Wednesday, March 26, 2014 08:04:52 PM (GMT)

[Uccmal]

Whatever they are, they have been accepted for BAC, WFC, JPM

 

http://www.federalreserve.gov/newsevents/press/bcreg/20140326a.htm

[ourkid8]

BAC and GS had to adjust their capital plans which means a lower capital return...  :-(

 

http://blogs.wsj.com/moneybeat/2014/03/26/regulators-reject-citis-capital-plan/?mod=yahoo_hs

 

The Fed said Wednesday that it approved capital plans for 25 banks, while rejecting the capital plans for five financial institutions. Two banks – Bank of America Corp.BAC -0.06% and Goldman Sachs Group Inc.GS -0.92% – received approval after submitting adjusted capital plans. Under their initial proposals, both banks had at least one capital measurement dip below the regulatory minimums.

 

 

[buylowersellhigh]

Do we know what was approved?

[dcollon]

Bank of America to Increase Quarterly Common Stock Dividend to $0.05 per Share and Authorizes a New $4 Billion Common Stock Repurchase Program 

Wednesday, March 26, 2014 08:36:00 PM (GMT)

 

 

Bank of America today announced that it intends to increase its quarterly common stock dividend to $0.05 per share, beginning in the second quarter of 2014. Also, the Board of Directors authorized a new $4.0 billion common stock repurchase program. This authorization, which covers both common stock and warrants, replaces the prior year’s common stock repurchase program that expires on March 31, 2014.

 

The Federal Reserve Board has informed the company that it completed its 2014 Comprehensive Capital Analysis and Review and that it did not object to the company’s capital plan, including the proposed dividend increase and repurchase program, covering the period from the second quarter of 2014 through the first quarter of 2015.

 

"Over the last few years we have focused on positioning the company to return capital to our shareholders,” said Chief Executive Officer Brian Moynihan. “We know that increasing the common dividend is important to our shareholders and we are pleased that we can continue to return excess capital through both repurchases and dividends.”

 

Dividends will continue to be subject to the Board’s approval at the customary times those dividends are declared. The company has historically paid its second quarter common stock dividend in late June. The timing and exact amount of common stock or warrant repurchases will be consistent with the company’s capital plan and will be subject to various factors, including the company’s capital position, liquidity, financial performance and alternative uses of capital, stock trading price, and general market conditions, and may be suspended at any time. The common stock or warrant repurchases may be effected through open market purchases or privately negotiated transactions, including Rule 10b5-1 plans, over the four quarters beginning with the second quarter of 2014.

 

Forward-looking Statements

 

Certain statements in this news release represent the current expectations, plans or forecasts of Bank of America based on available information and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often use words like “expects,” “anticipates,” “believes,” “estimates,” “targets,” “intends,” “plans,” “predict,” “goal” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

 

These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the uncertainties and risks discussed under Item 1A. “Risk Factors” of Bank of America's Annual Report on Form 10-K for the year ended December 31, 2013 and in any of Bank of America's other subsequent Securities and Exchange Commission filings.

 

Bank of America

 

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. The company provides unmatched convenience in the United States, serving approximately 50 million consumer and small business relationships with approximately 5,100 retail banking offices and approximately 16,300 ATMs and award-winning online banking with 30 million active users and more than 14 million mobile users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

 

[jay21]

http://finance.yahoo.com/news/bank-america-announces-settlements-federal-203800888.html

 

Bank of America today announced it reached a settlement with the Federal Housing Finance Agency (FHFA) as conservator of Fannie Mae and Freddie Mac to resolve all of FHFA’s residential mortgage-backed securities (RMBS) litigation with Bank of America, as well as other legacy contract claims.

 

The FHFA settlement resolves four lawsuits FHFA filed against Bank of America, Countrywide, and Merrill Lynch entities beginning in September 2011, alleging they falsely represented that the underlying mortgage loans complied with certain standards. Approximately $57.5 billion (in purchase cost) of private-label RMBS purchased by Fannie Mae and Freddie Mac are covered by the settlement.

 

Under terms of the settlement, Bank of America will make cash payments totaling approximately $6.3 billion to Fannie Mae and Freddie Mac. In addition, Bank of America will purchase certain RMBS at fair market value (approximately $3.2 billion). In return, FHFA’s pending lawsuits will be dismissed with prejudice and Bank of America and its affiliates will be released from all securities law and fraud claims, as well as certain other claims related to the private-label RMBS in dispute.

[fareastwarriors]

http://finance.yahoo.com/news/bank-america-announces-settlements-federal-203800888.html

 

Bank of America today announced it reached a settlement with the Federal Housing Finance Agency (FHFA) as conservator of Fannie Mae and Freddie Mac to resolve all of FHFA’s residential mortgage-backed securities (RMBS) litigation with Bank of America, as well as other legacy contract claims.

 

The FHFA settlement resolves four lawsuits FHFA filed against Bank of America, Countrywide, and Merrill Lynch entities beginning in September 2011, alleging they falsely represented that the underlying mortgage loans complied with certain standards. Approximately $57.5 billion (in purchase cost) of private-label RMBS purchased by Fannie Mae and Freddie Mac are covered by the settlement.

 

Under terms of the settlement, Bank of America will make cash payments totaling approximately $6.3 billion to Fannie Mae and Freddie Mac. In addition, Bank of America will purchase certain RMBS at fair market value (approximately $3.2 billion). In return, FHFA’s pending lawsuits will be dismissed with prejudice and Bank of America and its affiliates will be released from all securities law and fraud claims, as well as certain other claims related to the private-label RMBS in dispute.

 

 

FHFA in $9.3 Billion Settlement With BofA, Countrywide, Merrill Lynch

[bmichaud]

$4B? Are you kidding? They had $1.5B or so remaining from last year. What a joke.

[cubsfan]

Question for anyone that follows BAC legal issues:

 

Does this settlement largely put the legal issues behind BAC?

 

I have not done a good job of keeping up with what is in process or settled.

 

Thanks

 

[racemize]

$4B? Are you kidding? They had $1.5B or so remaining from last year. What a joke.

 

They had to revise, so I imagine it was quite a bit higher before.  They really got slammed on the Fed's tests this year.

[vinod1]

$4B? Are you kidding? They had $1.5B or so remaining from last year. What a joke.

 

That had $1.8B remaining and could use it through March 31 this year. $4B is for 2Q 2014 to 1Q 2015.

 

BAC has not really demonstrated the level of earnings necessary to support a higher level of buybacks. We investors are looking past the current elevated level of expenses but Fed needs earnings (adjusted for normalized loan losses) to actually materalize.

 

Vinod

[Uccmal]

$4B? Are you kidding? They had $1.5B or so remaining from last year. What a joke.

 

That had $1.8B remaining and could use it through March 31 this year. $4B is for 2Q 2014 to 1Q 2015.

 

BAC has not really demonstrated the level of earnings necessary to support a higher level of buybacks. We investors are looking past the current elevated level of expenses but Fed needs earnings (adjusted for normalized loan losses) to actually materalize.

 

Vinod

 

That seems about right.  Another major suit and settlement out of the way.  That would not have been included in the stress test.  There should be a significant cash build this year. 

[mankap]

I think FHFA settlement will have a big impact. This was the largest of the pending litigation settlements.

[bmichaud]

This authorization, which covers both common stock and warrants, replaces the prior year’s common stock repurchase program that expires on March 31, 2014.

 

 

IE....the $1.8 is rolled into this new $4B program.

[Grenville]

This authorization, which covers both common stock and warrants, replaces the prior year’s common stock repurchase program that expires on March 31, 2014.

 

 

IE....the $1.8 is rolled into this new $4B program.

 

That's assuming they haven't already exhausted the 1.8bln up to today. It's a new 4bln on top of whatever they've bought this year through today.

[racemize]

This authorization, which covers both common stock and warrants, replaces the prior year’s common stock repurchase program that expires on March 31, 2014.

 

 

IE....the $1.8 is rolled into this new $4B program.

 

That's assuming they haven't already exhausted the 1.8bln up to today. It's a new 4bln on top of whatever they've bought this year through today.

 

It should mostly be gone right?  There's only a few trading days left before April 1st.

[Daytripper]

It is good to see that BAC is interested in possibly repurchasing the warrants, but they can't have mine!

[wescobrk]

That's interesting if they didn't buyback any stock this quarter (1.8 is part of the four billion).

If so the capital return is only 4.2 billion for the next four quarters.

Down from 10.5 billion last year.

We will see when they report earnings.

 

[kevin4u2]

Another lawsuit tossed.

 

http://money.ca.msn.com/investing/news/breaking-news/judge-says-us-fraud-case-vs-bank-of-america-should-be-tossed

 

[fareastwarriors]

Accounting Trick Helps Banks Dodge Capital Pain

 

 

http://online.wsj.com/news/articles/SB10001424052702304688104579467562019765476?mod=Markets_newsreel_2

[ASTA]

Thanks everyone how contributed to this stock sold my shares to day at 205% gain to bad it was only a 3% holding still learning :D

[fareastwarriors]

Thanks everyone how contributed to this stock sold my shares to day at 205% gain to bad it was only a 3% holding still learning :D

 

 

Why sell now? What was your rationale?

[Guest 50centdollars]

Thanks everyone how contributed to this stock sold my shares to day at 205% gain to bad it was only a 3% holding still learning :D

 

You will learn another lesson by selling to early.