Growth Est BAC
Current Qtr. 700.00%
Next Qtr. 89.50%
This Year 291.70%
Next Year 17.00%
Rating Action: Moody's assigns provisional Aaa (sf) to Bank of America's Class A (2015-1) card ABS
Global Credit Research - 02 Feb 2015
Moody's Investors Service has assigned a provisional Aaa (sf) rating to the BAseries Class A(2015-1) Notes to be issued by the BA Credit Card Trust (Trust), sponsored by Bank of America, N.A. (Bank of America).
Moody's rating action is as follows:
Issuer: BA Credit Card Trust, BAseries
BAseries Class A(2015-1) Notes, Assigned (P)Aaa (sf)
Bank of America Corp. (NYSE:BAC) and Wells Fargo & Co. (NYSE:WFC), as the nation's top issuers of debit cards, were handed a victory with the U.S. Supreme Court's decision to let stand a Federal Reserve rule on how much the banks can collect from transactions, according to Bloomberg.
The news service reports a retail industry group led by NACS, formerly known as the National Association of Convenience Stores, had challenged the regulation, saying it didn't go far enough.
Merrill lynch had $2.03 trillion in client assets by the end of the fourth quarter
Bank of America Corp.’s wealth-management division contributed to nearly a quarter of the banking giant’s total revenue, underscoring the unit’s growing importance and its gains in attracting client assets.
Citigroup Inc. (“Citigroup”) announced today the expiration and final tender results of its previously announced cash tender offers. These Offers, in which Notes totaling approximately U.S. $1.15 billion are being accepted, are consistent with Citigroup’s liability management strategy, and reflect its ongoing efforts to enhance the efficiency of its funding and capital structure. Since 2013, Citigroup redeemed or retired U.S. $20.3 billion of securities, excluding exchanged securities, of which U.S. $8.0 billion was redeemed or retired in 2014, reducing Citigroup’s overall funding costs
President Barack Obama nominated Bank of America Corp. (BAC) executive Stefan Selig to oversee international trade as he seeks to jumpstart the economy by appointing a Wall Street veteran to the Commerce Department. The White House announced the nomination today, subject to confirmation by the U.S. Senate. Selig, Bank of America’s executive vice chairman of global corporate and investment banking, would report to Penny Pritzker, the Chicago businesswoman confirmed in June as Commerce secretary. Selig, 50, would replace Francisco Sanchez as undersecretary for international trade, a job that involves promoting American industry at home and abroad as head of Commerce’s International Trade Administration. Sanchez said in September he would resign from the post he has held since 2009. “Stefan Selig is a tremendous talent and we’ll be lucky to have him join the Commerce Department,” Pritzker said. “He has the global experience, management skills and understanding of how to put deals together to ensure that we will be able to continue our critical work to expand trade and exports, grow our economy and create jobs.”
Citigroup has come a long way since the financial crisis. It now has a much stronger capital position, and its balance sheet has continuously improved over the past four years. Just from the previous quarter, Citigroup's Basel III Tier 1 common ratio improved by 40 basis points to 10.4%, and the company's tangible book value improved by about 3% to $54.52. That means that Citigroup is trading at a discount to its TBV.
The credit quality of Citigroup's loan portfolio has also improved significantly, as is apparent in the bank's loan-loss allowance declining from $25.9 billion last quarter to $20.6 billion this quarter.
Bank of America is discussing a settlement with the Consumer Financial Protection Bureau to settle charges it deceived customers in the sales of credit-card add-on products, though a deal isn’t imminent as the two negotiate the terms, according to Bloomberg, citing two people briefed on the talks.
Investors in Bank of America Corp. (NYSE:BAC) were undoubtedly disappointed by a judge ruling this week, which disallowed them from continuing a lawsuit against the bank — claiming that it should have warned them that American International Group Inc. (NYSE:AIG) intended to sue. U.S. District Judge John G. Koeltl stated that Bank of America fulfilled its responsibilities to prepare investors, and “cautioned investors that it faced substantial and rising litigation risks,” according to Bloomberg.
While the legal issues may not allegedly be in public filings for the bank, AIG’s lawsuit was announced in the press, easily available information and publicly known. Koeltl said that the bank officers “argue correctly that the alleged omissions did not mislead investors because information about BoA’s exposure to MBS litigation generally, and AIG’s claim in particular, was in the public domain.”
After the housing bubble burst, buyers needed to come to the table with as much as 20% down or they had to turn to the Federal Housing Administration for a low down-payment loan. But now banks like TD Bank, Bank of America (BAC, Fortune 500), and Wells Fargo (WFC, Fortune 500) are loosening the purse strings, offering loans with down payments that are as low #$%$.
TD Bank's "Right Step" mortgage, for example, allows borrowers to secure a loan with a 5% down payment. It also allows them to receive as much as 2% of the sale price as a gift from a relative or other third party, so they would really only need 3% down.
Citi® is now the preferred credit card of American Airlines Center, as well as resident professional sports teams including the 2011 NBA Champion Dallas Mavericks and the NHL Dallas Stars. Citi credit cardmembers can enjoy benefits including exclusive presales for Mavericks and Stars games, discounted pre-game concessions, preferred pricing on select merchandise, as well as special game day experiences. As part of this sponsorship, the Citi® / AAdvantage® credit card will be featured prominently throughout the venue.
“We are always looking for new ways to deliver memorable experiences for our customers with the venues and talent that appeal to them most in sports and entertainment,” said Jennifer Breithaupt, SVP of Entertainment Marketing at Citi. “American Airlines Center is recognized as one of the premier venues in the country, and we believe this partnership will help further raise visibility and preference for Citi in this important market.”
It's a legal victory for Bank of America (BAC +0.1%) as a federal judge dismisses an investor lawsuit accusing it of concealing a $10B fraud case brought by AIG. The bank was not required to disclose the imminence of the suit because the news wasn't materially different than previously-disclosed information, says the judge, the bank made no inaccurate or incomplete statements, and there was no duty to disclose the information sought.
Of course, BofA's 20% dive on the day in 2011 when AIG sued it over $28B in MBS suggests something materially different occurred.
Whether the $8.5B settlement on that case goes through is at this moment before a judge (the Article 77 hearing is expected to restart next week).
St. Louis Fed President James Bullard appeared on CNBC's "Squawk Box" on Monday. The centrist Bullard is a voting member at the Federal Reserve this year. The more hawkish Philadelphia Fed President Charles Plosser, appearing on the show Friday, argued that specific dollar limits should be put on the size of the central bank balance sheet, which is approaching $4 trillion. Plosser will be a voting member at the Fed in 2014.
Meanwhile, Dallas Fed President Richard Fisher told an Australian economic forum Monday that an ineffective, fractious, and fiscally irresponsible government has slowed the U.S. economic recovery and counteracted the stimulative effects of Fed's super-accommodative monetary policy. Fisher will be a voting member at the Fed next year. The Fed took no action at its October meeting, after surprising Wall Street in September by not tapering its $85-billion-a-month bond-buying program known as quantitative easing.
Monetary policymakers are set to hold their final meeting of the year on Dec. 17 and 18—followed by the release of a summary of their economic projections and what will presumably be the last scheduled news conference from outgoing Fed Chairman Ben Bernanke.
Citigroup and Deutsche Bank appointed joint bookrunners
Dubai developer DAMAC Properties said on Monday it plans to raise around $500 million from a sale of global depositary receipts on the London Stock Exchange as it seeks to take advantage of a recovery in the emirate's property market. No details on timing or the percentage of the company being sold to investors was given in the statement.
Citigroup and Deutsche Bank are joint bookrunners for the offering, with the investment banking arm of Saudi Arabia's Samba Financial Group and VTB Capital acting as co-lead managers. It recently announced plans for a $1 billion Hollywood-themed development in Dubai with Viacom Inc's Paramount Group and said in May it was working with American real estate mogul Donald Trump to build a new golf course in Dubai.
The federal government's latest annual deficit is the smallest it's been since 2008, according to Treasury Department data released Wednesday.
At $680 billion, the fiscal 2013 deficit is 51% less than it was in 2009, when it hit a record high nominally of $1.4 trillion. As a percent of the economy, it's also considerably smaller than it's been in the past five years, coming in at 4.1% of gross domestic product. By contrast, the annual deficit in 2009 topped 10% of GDP. And last year it was 6.8%. Overall, Treasury said higher receipts accounted for 79% of the decline in the deficit from last year.
Representative Jeb Hensarling leads the House Financial Services Committee.
Updated, 9:27 p.m. | The House of Representatives, with bipartisan support, passed legislation on Wednesday that would roll back a major element of the 2010 law intended to strengthen the nation’s financial regulations by allowing big banks like Citigroup and JPMorgan Chase to continue to handle most types of derivatives trades in house. The bill, which passed by a 292-122 vote, would repeal a requirement in the Dodd-Frank law that big banks “push out” some derivatives trading into separate units that are not backed by the government’s insurance fund.
Lobbyists and Financial Regulation
But the debate Wednesday regarding this decidedly technical matter quickly turned into an impassioned dispute over the role the federal government has played since the recession in regulating financial markets. Advocates of the legislation argued on the House floor that the federal government is partly responsible for the slow rate of economic growth because it imposed excessive new regulations. “America’s economy remains stuck in the slowest, weakest nonrecovery recovery of all times,” said Representative Jeb Hensarling, Republican of Texas, the chairman of the House Financial Services Committee. “Those who create jobs for America are drowning in a sea of red tape preventing them.”
Qatar's sovereign wealth fund, one of the world's most prolific investors, is building a $1 billion holding in Bank of America (BAC), seeking to benefit from the U.S. economic recovery, the Financial Times reported, citing sources close to the plans. Qatar Holding, the investment arm of Qatar Investment Authority (QIA), began buying BofA shares about two years ago, the newspaper said on its website, citing a person close to the fund. The FT added that Qatar had bought more of the bank's shares when their price fell to $7-$8 last year. BofA's stock closed at $14.17, up 2 cents, on the New York Stock Exchange. A $1 billion stake at this price represents less than 1 percent of BofA, which has a market capitalization of about $151.2 billion, according to Thomson Reuters data. Under newly appointed Chief Executive Ahmed Al-Sayed, QIA has been on an aggressive expansion spree, hiring bankers and senior executives with experience ranging from mergers and acquisitions in Asia to retail and luxury investments in Europe. The FT said QIA had hired Michael Cho, a former co-head of Asia mergers and acquisitions at BofA, for a senior role in its mergers and acquisitions department.
Three sources had told Reuters in September that Qatar Holding had hired Ugo Arzani, most recently a BofA managing director in London, as its new head of consumer and retail investments.
The sources had also said that QIA, worth more than $100 billion, was scouting for opportunities