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Stock Market & Financial Investment News

News Breaks
May 6, 2013
15:35 EDTBAC, MBIBofA confirms settlement with MBIA, lowers Q1 EPS by 10c
Bank of America Corporation (BAC) confirmed a comprehensive settlement with MBIA Inc. (MBIA) to resolve all outstanding representations and warranties claims and all other claims between the parties. The agreement requires certain approvals of the New York State Department of Financial Services, which are expected to be received shortly, at which point the parties will execute the agreements and promptly close all contemplated transactions described below. As part of the settlement, Bank of America will pay MBIA approximately $1.6B in cash and remit to MBIA all of the outstanding MBIA 5.70% Senior Notes due 2034 that Bank of America acquired through a tender offer in December 2012. In addition, Bank of America will terminate all of its outstanding credit default swap protection agreements purchased from MBIA on commercial mortgage-backed securities, as well as terminate certain other trades in order to close out positions between the companies. MBIA will issue to Bank of America warrants to purchase 9.94M shares of MBIA common stock, or approximately 4.9% of its currently outstanding shares, at an exercise price of $9.59 per share. The warrants may be exercised at any time prior to May 2018. Also, Bank of America will provide a senior secured $500M credit facility to MBIA Insurance Corp. Bank of America will record $1.6B in additional pretax charges in the first quarter of 2013, of which $1.3B is related to the settlement and the remainder is related to other monolines. The after-tax effect of the additional charges will reduce the company's Q1 net income to $1.5B, or 10c per diluted common share, from the $2.6B, or 20c per diluted common share reported on April 17. As the settlement occurred prior to filing the company's Quarterly Report on Form 10-Q for the period ended March 31, generally accepted accounting principles require Bank of America to apply the additional charges to the financial results for the quarter ended March 31, the bank explained. The effect of these actions is expected to increase the company's estimated Tier 1 common capital ratio under Basel 3 as of March 31 by 10 basis points to 9.52%, reflecting the reduction in risk-weighted assets associated with the terminated CDS contracts, partially offset by the additional litigation expense. In addition, the company's tangible book value per common share at March 31 is $13.36 per share, 10c per share less than reported on April 17.
News For BAC;MBI From The Last 14 Days
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August 21, 2014
09:07 EDTBACBofA to pay $16.65B in settlement with DOJ, state AGs
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09:03 EDTBACBank of America to pay $16.65B in settlement with DOJ, Bloomberg reports
08:41 EDTBACBank of America, DOJ settlement to be announced today, CNBC reports
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06:43 EDTBACRegulators up bank warning efforts for poor risk assessment, Reuters says
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August 20, 2014
18:29 EDTBACBofA, JPMorgan weigh plans to raise salaries for junior bankers, Bloomberg says
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17:12 EDTBACOn The Fly: Closing Wrap
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14:35 EDTBACBofA reaches $17B settlement over mortgage backed securities sales, AP says
Bank of America along with federal and state authorities agreed upon a $17B settlement for the bank in connection with the sale of mortgage-backed securities in the run-up to the 2008 financial crisis, says AP. Reference Link
14:20 EDTBACBofA reaches $17B settlement over mortgage backed securities sales, AP says
08:38 EDTBACRevolution Lighting enters loan, security agreement with BofA
Revolution Lighting (RVLT) announced that it has entered into a three year loan and security agreement with Bank of America (BAC). The agreement allows Revolution Lighting to borrow up to $25M on a revolving basis. Borrowings under the agreement are determined on specified percentages of eligible receivables and inventory, and bear interest either on the base rate plus specified margins or at LIBOR plus specified margins, at the election of Revolution Lighting. The loan provides Revolution Lighting with favorable interest rates with an initial interest rate of 3%. The agreement contains customary covenants and restrictions typical of these agreements.
August 19, 2014
06:20 EDTBACBofA COO transfers, senior manager assumes role, Bloomberg says
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August 18, 2014
06:47 EDTBACU.S. banks consider Ireland fitting spot for EU divisions, FT says
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August 15, 2014
10:07 EDTBACBank of America reports July default rate 3.01% vs. 3.24% last month
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10:01 EDTMBIOn The Fly: Analyst Upgrade Summary
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09:10 EDTMBIOn The Fly: Pre-market Movers
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07:35 EDTMBIMBIA upgraded to Buy from Neutral at BTIG
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August 14, 2014
08:28 EDTBACBofA, DOJ still in talks over $17B settlement, NY Post says
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August 12, 2014
09:35 EDTBACActive equity options trading on open
Active equity options trading on open according to Track Data: AAPL GOOG C TSL EXAS BAC DNDN JNJ TSLA
07:48 EDTBACBanks posted second-highest profit in 23 years in second quarter, WSJ says
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August 8, 2014
09:37 EDTBACActive equity options trading on open
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07:18 EDTBACRegulators direct banks to steer mortgage aid to hard-hit areas, FT says
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