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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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November 21, 2014
07:24 EDTBACBB&T CEO says 'banks lending recklessly' again, Reuters reports
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November 20, 2014
07:23 EDTBACBoston Security Analysts Society to hold a conference
Sustainable Investing: Taking the Long View is being held in Boston on November 20.
07:11 EDTBACBofA/Merrill to hold a conference
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November 19, 2014
07:51 EDTBACClearing House Payments Company to hold a conference
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November 17, 2014
10:15 EDTBACBank of America reports October default rate 2.81% vs. 2.93% last month
Reports October delinquency rate 1.94% vs. 1.92% last month.
November 12, 2014
16:23 EDTBACOn The Fly: Closing Wrap
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12:38 EDTBACOn The Fly: Midday Wrap
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10:14 EDTBACOCC fines Bank of America, Citigroup, JPMorgan $950M over FX trading
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07:28 EDTBACBofA/Merrill to hold a conference
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November 11, 2014
11:56 EDTBACAmerican Commercial weighs sale with value of over $1B, Financial Times says
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06:59 EDTBACBank of America's head of FICC trading to retire by year-end, WSJ reports
Bank of America's head of global fixed income, currencies and commodities trading trading, David Sobotka, will retire by year-end, the Wall Street Journal reports, citing an internal memo sent to employees. Sobotka is planning to take some time off before deciding on his next steps. Sources say BofA will name Sobotka's replacement by the end of the year. Reference Link
05:52 EDTMBIMBIA management to meet with MKM Partners
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November 10, 2014
06:53 EDTBACBank of America, U.S. Bancorp settle bond trustee class action, Reuters says
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06:46 EDTBACRegulators set new capital buffer rule for banks, Reuters reports
Global banks should have buffers of bonds or equity worth 16%-20% of their risk-weighted assets, beginning in January 2019, The Financial Stability Board decided, according to Reuters. The board said the buffer would prevent the need for government bailouts, the news service explained. Publicly traded global banks include Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) Wells Fargo (WFC), Banco Santander (SAN), Barclays (BCS), Credit Suisse (CS), Deutsche Bank (DB), HSBC (HSBC), ING Groep (ING), Lloyds Banking (LYG), RBS (RBS) and UBS (UBS). Reference Link
November 9, 2014
13:00 EDTBACBofA looks for additional SEC sanctions to be waved, Bloomberg says
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