BofA (BAC) CEO Says Principal Reduction not Mortgage Solution

Bank of America (NYSE:BAC) CEO Brian Moynihan said at the National Association of Attorneys General that cutting the principal for mortgage borrowers won't help in the foreclosure mess America is facing.

Moynihan rightly noted that there was no way the reduction in principal could be done in a fair manner, as those that have been responsible with their payments would receive the message that it pays not to pay.

While not saying it, there is the strong possibility a slew of lawsuits would follow, or demands that those paying their mortgages on time and up to date would want their principle reduced as well.

Lawsuits would surely follow from shareholders as well, as the banks would take an enormous hit if they were to roll out this type of plan.

He's right of course. Banks and shareholders have no obligation to pay for borrowers who took out money against their homes at the top of the market. They made the choice and now should have to live with the consequences. To reward poor choices is to create a future that would be even worst than the past and present we now face in the sector.

"We're reaching a point where some customers will be dealing with the reality that despite the myriad programs and the best efforts of everyone in this room, and of our teammates working with these customers, foreclosure may be unavoidable," he concluded.

Bank of America was trading at $13.42, down $0.05, or 0.37 percent, as of 10:22 AM EDT.

Bank of America (BAC) Launching MLB Campaign

With the upcoming season of major league baseball approaching, Bank of America (NYSE:BAC) is partnering with MLB across several cities to celebrate the start of new season.

Brian T. Moynihan, chief executive officer of Bank of America, said, "The excitement of Opening Day provides an opportunity to show our support of Major League Baseball and to thank our customers for choosing Bank of America."

How it will work is stars from the league will appear unannounced as some of Bank of America's locations, where they'll take time to interact with customers and offer up a variety of giveaways, including items that are autographed and free tickets, among other things.

Bank of America closed Friday at $13.37, gaining $0.04, or 0.30 percent.

Bank of America (BAC)'s CEO Compensation Cut to $1.94 Million

In a proxy filing Bank of America Corp. (NYSE:BAC) revealed Chief Executive Officer Brian T. Moynihan had his compensation cut to $1.94 million in 2010, down by 70 percent from the prior year.

Moynihan enjoyed a raise in salary from $800,000 to $950,000, but had his stock awards lowered from $5.2 million to zero.

Even so, the Bank said Moynihan earned about 410 million in 2010, as the final figures didn't take into account the $9.05 million in restricted stock which was linked to performance, and which will be paid out n 2014, assuming the company meets goals related to return on assets, said the giant bank.

Moynihan took over the reins of the company in January 2010.

Bank of America closed Wednesday at $13.45, gaining $0.10, or 0.75 percent.

BofA (BAC) Recipient of Class Action Law Suit

Criden & Love, P.A. ("Criden") today announced that a securities class action lawsuit was filed on March 22, 2011 in the United States District Court for the Southern District of New York on behalf of purchasers of Bank of America Corporation ("BAC") (NYSE:BAC) common stock during the period between July 1, 2008 and October 19, 2010, inclusive (the "Class Period"). If you wish to serve as lead plaintiff, you must move the Court no later than April 4, 2011. You need not seek to become a lead plaintiff in order to share in any possible recovery.

This action seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated there under. The defendants are BAC, individually and as successor-in-interest to Countrywide Financial Corporation, Brian T. Moynihan, Charles H. Noski, Kenneth D. Lewis, and Joseph L. Price (collectively, "Defendants"). Prior to its acquisition by BAC, Countrywide was one of the world's largest residential mortgage lenders. As has now been widely reported, Countrywide's mortgage lending and servicing practices were rife with fraud, predatory tactics, and other misconduct. This action alleges that BAC adopted these practices and concealed material information and made false and misleading statements concerning the same, which artificially inflated the price of BAC stock until the truth was revealed.

Any member of the alleged class may seek to be appointed as lead plaintiff, even if that person has not filed a complaint, by complying with the relevant provisions of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). See 15 U.S.C. Section 78u-4(a)(2)(A)(I)-(iv). The Plaintiff - Patricia Grossberg Living Trust – seeks to recover damages on behalf of the class and is represented by Criden & Love, P.A., a firm with a strong background and significant experience in handling securities class actions and other complex litigation. If you have any questions about this Notice, the action, or your rights, please contact us at www.cridenlove.com.

Bank of America closed Tuesday at $13.88, down $0.17, or 1.21 percent.




Source

Bank of America (BAC) Commits $1.22 Million to Earthquake Victims in Japan

Update: Changed billion in headline to million.

In an effort to aid victims of the earthquake and tsunami in Japan, Bank of America (NYSE:BAC) said they're commiting $1.22 million (100 million yen) to the cause.

Included in the payout will be 50 million yen to the American Red Cross (ARC), which is partnering with the Japanese Red Cross Society to help meet the immediate needs of survivors.

Brian T. Moynihan, president and chief executive officer of Bank of America, said, "We are determined to do our part in ensuring that the communities affected by this tragedy receive relief and refuge as soon as possible. We are coordinating with employees in Japan and across the globe on a number of initiatives aimed at encouraging a swift recovery."

The other half of the donation will help with the long-term recovery of the island nation, including the rebuilding of various infrastructure damaged in the catastrophe.

Employee donations to the ARC “Japan Earthquake/Pacific Tsunami Relief Fund” will be matched by the giant bank, adding to the amount it ultimately donates.

BofA (BAC)(WFC)(JPM)(C) Fighting Foreclosure Settlement Proposal

The giant banks are fighting to reduce the amount and terms of a probable settlement concerning foreclosures, as Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), JPMorgan (NYSE:JPM) and Citigroup (NYSE:C) are growing more vocal with their criticism of the idea, but also looking at the best ways to go forward.

Banks are claiming it could do irreparable harm to the U.S. economy if they are forced to pay for write-downs of loans held by government-controlled Fannie Mae and Freddie Mac.

Wells Fargo CEO John Stumpf said, "It's important to the country so that whatever happens does not slow down the recovery."

One of the tools being used to strengthen this argument is how long it would take to go through the foreclosure process if the proposals go forward. Bank of America has estimated it could take up to 200 days, while JPMorgan asserts it could go on for as long as a year.

Concerning the fairness of the proposals, BofA Chief Executive Officer Brian Moynihan said, "When you start helping certain people and don't help other people, it's going to be very hard to explain the difference."

Bank of America (BAC): Good Bank or Bad Bank?

For those familiar with the savings-and-loan crisis of the 1980s, they will recall how the financial institutions created two different types of structures to deal with mortgages; that's what Bank of America (NYSE:BAc) says they're going to do as well.

Terry Laughlin, who is overseeing the resolution of BofA’s troubled mortgages, said, “We are creating a classic good bank, bad bank structure."

“We’re going to get after this, we’re going to do it the right way and we’re going to put it to bed in the next 36 months,” he added.

The "bad bank" will include about 6.7 million loans with approximately $1 trillion in outstanding principal.

Bank of America CEO Brian Moynihan said the separation of mortgages into the good-bank bad-bank structure should be finished by the end of March.

The bank closed Tuesday at $14.69, gaining $0.66, or 4.70 percent.

BofA (BAC) `Again a Growth Company' Says Moynihan

Bank of America Corp. (BAC) CEO Chief Executive Officer Brian T. Moynihan gave his giant bank a boost on Tuesday as he attempted to convince shareholders and potential investors the company was "again a growth company."

Moynihan claimed in an investor day presentation that “We can generate significant excess capital and return it to shareholders.”

Berkshire Hathaway (NYSE:BRK-A) CEO Warren Buffett, who is a bellwether himself, wasn't convinced, and divested of all his holdings in Bank of America last quarter, generating concerns over the growth prospects of the giant bank.

“We are changing the culture of the company from a company that was built upon acquisitions and consolidation,” Moynihan exclaimed. “We are again a growth company.” Only time will tell.

Bank of America closed Tuesday at $14.69, up $0.66, or 4.70 percent.

Bank of America's (BAC) Moynihan Talking Profits at Investor Conference

Bank of America (NYSE:BAC) CEO Brian Moynihan is expected to give his projections on the bank's expected profits for 2011 at the BofA investor conference on Tuesday, according to a report from Bloomberg.

Moynihan will "detail progress on his vow to increase shareholder equity," said the report, citing two people close to the CEO.

With sentiment falling concerning Bank of America, analysts and investors are looking forward to hearing what the banking head will say after losing $3.6 billion last year, and being total sold off by Berkshire Hathaway's (NYSE:BRK-A) CEO Warren Buffett.

Along with Moynihan, also expected to speak at the conference are Terry Laughlin (foreclosures), Joe Price (consumer banking), Tom Montag (investment banking) and David Darnell (commercial banking).

Bank of America was trading at $13.99, down $0.12, or 0.89 percent, as of 12:27 PM EST.

Bank of America (NYSE:BAC) Says No Senior Executive Cash Bonuses for 2010

Bank of America (NYSE:BAC) announced senior executives at the company won't be receiving cash bonuses for 2010. CEO Brian Moynihan won't get an increase in his base salary either, according to a securities filing.

The filing said senior executives at the company will not receive a cash incentive payment for their performance in 2010, and the base salary of $950,000 for Brian Moynihan will remain in place.

Chief financial officer Charles Noski, however, did receive an increase in his base pay, having it increased from $800,000 t $850,000.

Bank of America closed Monday at $13.73, up $0.13, or 0.96 percent.

Bank of America's (NYSE:BAC) CEO Says Euro Survived Major Test

Comments from Bank of America's (NYSE:BAC) CEO Brian T. Moynihan that the euro has survived a major test and is "holding together," seems to be a very premature conclusion to draw, as the EU sovereign debt crisis hasn't went away by any means.

This was in response to the rescue packages awarded to Greece, and then Ireland, in 2010, along with concerns over other countries and their ability to remain solvent.

Moynihan stated, “We see the euro holding together; it’s a committed-to structure. We think it’s fundamentally there and it’s survived a major testing.”

We think the major testing is still going on, and the worst is yet to come with the euro. Greece and Ireland were the easy countries to deal with, and they had the euro back on its heels. If one of the stronger economies have to be bailed out, it's doubtful the euro could survive, or at best, some countries would probably leave it.

Bank of America was trading at $13.76, gaining $0.09, or 0.62 percent, as of 11:47 AM EST.

Bank of America (NYSE:BAC) Weighed Down by Countrywide Acquisition

Bank of America (NYSE:BAC) continues to be held back by their acquisition of Countrywide, which brought with it huge exposure to the home loan market. That has resulted in another quarterly loss for the financial giant, which lost $1.2 billion for the quarter.

Bad home loans were by far the major loss for the bank in the reporting period. The loss was driven by a $2 billion writedown related to its mortgage business.

Without the writedown, Bank of America would have posted earnings in the fourth quarter of $756 million, or 4 cents a share, still 10 cents below expectations.

Commenting on the quarter and overall year, CEO Brian Moynihan said, "Last year was a necessary repair and rebuilding year."

The idea was to attempt to start off 2011 with much of the problem cleaned from the books. It remains to be seen whether they've been successful or not in that endeavor.

Revenue for the quarter was $22.4 billion, falling from $25.1 billion in the prior year.

Bank of America was trading at $14.36, down $0.18, or 1.24 percent, as of 11:31 AM EST.

Bank of America (NYSE:BAC) Taking $2 Billion Charge in Q4

In order to settle home loan buyback claims with Fannie Mae and Freddie Mac, Bank of America (NYSE:BAC) paid out $1.34 billion on Friday to Fannie Mae and $1.28 billion to Freddie Mac. That leaves an estimated $2.7 billion in outstanding claims against Bank of America by Fannie Mae and Freddie Mac.

Citing the fulfillment of their promise of boosting equity by $3 billion, Bank of America added they're no longer under any obligation to the Troubled Asset Relief Program of the U.S. government, which was confirmed by the Federal Reserve.

Bank of America CEO Brian Moynihan said in a statement, "These actions resolve substantial legacy issues in the best interest of our shareholders."

Bank of America announced it will take a fourth-quarter impairment charge of close to $2 billion.

They were trading at $14.05, gaining $0.70, or 5.28 percent, as of 12:33 PM EST.

Bank of America (NYSE:BAC) Gets Deadline Extension in Putback Battle

Growing pressure from large institutional investors for Bank of America (NYSE:BAC) to buy back billions in bad mortgages has put the giant bank on the defensive, but they have received some respite from bondholders who say they can wait as long as "constructive" talks continue.

Bank of America would rather settle than enter litigation, as the discovery process could reveal a number of embarrassments and other unknown revelations that would be associated with former mortgage giant Countrywide.

The problem with a settlement is bondholders not participating would be at a disadvantage to those that did. Consequently the number of bondholders joining the initiative is growing. So far 17 firms have joined together to press Bank of America on the issue.

CEO of Bank of America, Brian T. Moynihan, is ready to fight, as he said in November he would enter “hand-to-hand combat” against Fannie Mae and Freddie Mac buyback demands, along with private investors and bond insurers wanting to have the loans returned.

Putback claims that are pending have risen from $7.7 at the end of 2009 to $12.9 billion as of September 30, 2010.

Jerry Dubrowski, a spokesman for Charlotte, North Carolina-based Bank of America, said, “The extension will go on as long as the parties are engaged in a constructive discussion. As we have said all along, if there is a valid claim, we will act responsibly. If there is no defect, we will defend our interests and the interests of our shareholders.”

Bank of America's (NYSE:BAC) CEO Says Tax Cuts Could Jump-start Hiring

In an interview with Bloomberg TV, Bank of America's (NYSE:BAC)Chief Executive Brian Moynihan said the continuation of tax cuts could generate business confidence leading to increased hiring.

Moynihan said, “The attitudinal switch helps in that people are saying, 'Ok, they’re trying. And they’re helping us.' And … so therefore that sort of can shift attitudes among business. At the end of the day, that’s probably what is most important, to have the attitude that yes I will hire more, yes I will do more, because I think I’m being supported.”

Bank of America is trading up today, surging to $11.97, up by $0.40, or 3.46 percent, as of 1:37 PM EST.

Republicans pressured Obama to continue the Bush tax cuts for everyone, making it possible to create a more positive business environment.

Bank of America (NYSE:BAC) Should Boost Dividends in 2011 Says Moynihan

Although some have expressed skepticism over the comments by Bank of America (NYSE:BAC) CEO Brian Moynihan that he sees no reason why the financial institution won't be able to increase dividends next year, he seems to maintain his position.

Even if there is a dividend, it appears that it won't be anything of significance until 2012 or 2013.

While saying “We are going to do it as soon as we can,” Moynihan said he sees the “recurring dividend rate is going to be more of a 30%” of earnings, which would affirm a much smaller rate.

Anyone hoping for a major dividend increase will probably be disappointed in the short term, as Moynihan pointed out he didn't want to make a big move and then have to cut it afterwards because of the need of more capital.

It's unlikely a dividend increase in 2011 would come in the first quarter, as it will take all of that, as far as time goes, to work through the variables and come to a decision.

Bank of America was trading at $11.64, level at $0.00, as of 12:45 PM EST.