|Bid||27.91 x 1200|
|Ask||28.30 x 43500|
|Day's Range||27.85 - 28.18|
|52 Week Range||22.66 - 31.91|
|Beta (3Y Monthly)||1.66|
|PE Ratio (TTM)||10.38|
|Forward Dividend & Yield||0.60 (2.16%)|
|1y Target Est||N/A|
"The advice part is going up. The operational part is going down. On average, the branch will get smaller."
Bank of America Corp said on Wednesday it will no longer finance operators of private prisons and detention centers, joining peers in distancing itself from a sector that has triggered protests over the Trump administration's immigration policies. JPMorgan Chase & Co and Wells Fargo & Co. made similar commitments to stop financing private prison companies earlier this year. Activism against the financing of private prisons has increased amid tightening immigration policies under U.S. President Donald Trump and concerns about detention conditions.
Regions Bank in Charlotte has a new local leader, and the first order of business is completing a transition that's as smooth as possible.
The University of Pittsburgh and the Bank of America Charitable Foundation on Wednesday announced Diane Denis as the Terrence Laughlin Chair in Finance at the Joseph M. Katz Graduate School of Business and College of Business Administration. This new chair was established at Pitt with the foundation’s $2 million gift made in memory of Terrence Laughlin. Laughlin, a former Pitt trustee and vice chairman of Bank of America Corp.’s wealth management businesses, passed away in October 2018 at age 63.
Increased use of digital methods to do banking transactions encourages Bank of America (BAC) to introduce features to enhance clients' experience.
Bank of America's (BAC) commodity arm has been fined by the DOJ for injecting misleading information into the precious metals futures market.
Trump, Xi, to Meet on Saturday As Global Economy Hangs In Balance President Trump will be meeting with China’s Xi Jinping this weekend, but won’t cow to any conditions on the use of tariffs, which raises the question of what the two will be talking about. One official said that an agreement not to raise […]The post Market Morning: Trump vs Xi, Ali, & Powell, Bank of America Sees $30 Oil appeared first on Market Exclusive.
(Bloomberg Opinion) -- “This may be the peak before it all falls apart again.”So said Peter Crane, president of Crane Data, on Monday, the first day of the Crane’s Money Fund Symposium, which bills itself as the largest meeting of money-market fund managers and cash investors in the world. He added that he was putting a positive spin on the industry by noting that assets were rising when balances typically fall. The amount of money in government and prime funds has soared in 2019 to more than $3 trillion, the most since the financial crisis, driven by U.S. short-term yields exceeding those of longer-maturing bonds. On its face, the impetus to park money in ultra-safe money-market funds makes a lot of sense. After all, equities are at or near all-time highs, corporate-bond spreads have tightened across the board, and, again, the yield curve is inverted, inevitably raising the specter of a coming recession. In fact, I posited in late March that inversion would most likely accelerate the dash for cash, after noting that during January and February, individual investors bought $39 billion of Treasury bills at auctions, the most since at least 2009. There’s one obvious difference between then and now. Three months ago, the Federal Reserve was firmly on pause, with officials signaling they were in no hurry to move interest rates. Now, the bond markets consider a rate cut in July as a virtual certainty and expect the central bank’s benchmark lending rate to be about 75 basis points lower by the end of the year.Make no mistake: Such steep cuts would most likely roil money-market funds. Crane and others at the industry gathering in Boston are putting on brave faces, but the simple truth is that a return to the post-crisis policy of pinning short-term interest rates near zero would force many investors to withdraw their money and seek higher-yielding alternatives.The problem, of course, is that those other options are few and far between. My Bloomberg Opinion colleague Marcus Ashworth recently wrote about the “madness” of 100-year bonds from Austria that may yield 1.2%. Bloomberg News’s Cameron Crise described the plight of a friend who had plowed money into six-month bills around the start of the year and doesn’t know where to invest the principal now that the rate on those Treasuries is some 50 basis points lower. It was 2.38% as recently as May 30; it’s 2.08% now.It’s true that Treasury yields across the board have moved swiftly lower in recent weeks. The benchmark 10-year yield is back below 2%. The five-year yield, which reached as high as 3.1% in November, is now just 1.72%. And this is happening even though the median projection among Fed officials on their “dot plot” is for unchanged rates in 2019 and one cut in 2020.This divergence in expectations between policy makers and bond traders means the mad grab for yield could only intensify if the Fed follows through with lowering interest rates next month. And if that’s the case, investors would be better off leaving money-market funds now in favor of Treasuries with some duration.Consider the period in 2016 from late January to mid-June, just ahead of the U.K. vote to leave the European Union. In that five-month stretch, the benchmark 10-year yield fell from 2% to about 1.5%, providing a total return of 5.4%. Two-year Treasuries, by contrast, gained just 0.75% and bills (which admittedly had much lower rates at the time) earned only 0.25%, according to ICE Bank of America indexes.That’s hardly an unrealistic scenario for the 10-year Treasury note. At their core, longer-term Treasuries are priced based on investor expectations for the path of short-term interest rates. The Fed raised them to a range of 2.25% to 2.5%, then had to screech to a halt. If they’re unlikely to get back to that level in the next decade, and in fact may stay substantially lower for an extended period of time, then a 2% 10-year yield looks like a bargain.Granted, as Crise points out, it would only take 10-year yields rising to 2.23% to wipe out an entire year’s worth of interest. Still, it’s hard to see exactly what would push them in that direction, and, just as important, what would prevent a wave of dip buyers from swarming in and canceling out the move. For those concerned about market risk, there’s still a chance to buy into high-yielding certificates of deposit. Goldman Sachs Group Inc.’s Marcus, for instance, offers the opportunity to save for as long as six years with an annual percentage yield of 2.95%. Money-market fund managers, meanwhile, still have time to get ahead of what appears to be the start of a period of Fed interest-rate reductions. They’re going to “want to have dry powder,” Mark Cabana, head of U.S. interest rate strategy at Bank of America, said at the symposium on Tuesday, referring to the ability to handle investor withdrawals. The difficult question remains just how far the Fed will go in lowering interest rates. Chair Jerome Powell, in his press conference after the central bank’s latest decision, noted that “an ounce of prevention is worth a pound of cure” in this era of near-zero rates (he used the same phrase in a panel discussion on Tuesday). That could be taken to mean policy makers will act quickly and decisively, and then stop to see how that flows through to the economy and financial system. On the other hand, St. Louis Fed President James Bullard, who dissented at the June meeting in favor of lowering rates, said on Bloomberg TV on Tuesday that the current situation doesn’t call for a 50-basis-point cut.In that case, money-market rates would be lower but hardly decimated. As Alex Roever, head of U.S. rates strategy at JPMorgan Chase & Co., noted to Bloomberg News’s Alex Harris, in 2007 and 2008, when the Fed swiftly took interest rates to near zero, “it wasn’t the fact that they had to cut rates” that damaged the industry, but that “the overall level of rates got so low.”It has been a slow-but-steady comeback from the doldrums for money markets. Historically, according to Roever, the exodus tends to be the same, with outflows starting a year or two after the Fed begins to ease. At the same time, no prior period has had $13 trillion of negative-yielding debt worldwide. Just because there’s already been a rush toward higher yields in the U.S. doesn’t mean it can’t go further when interest-rate cuts begin.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Banca Monte dei Paschi di Siena SpA is close to selling bad loans with a face value of more than 1.1 billion euros ($1.3 billion) to Cerberus Capital Management, Bank of America Corp. and Illimity Bank SpA, people familiar with the matter said.The Italian bank is in final talks with Cerberus to sell a package of non-performing loans backed by real estate with a gross book value of about 500 million euros, the people said, asking not to be identified because the process is private. Bank of America is wrapping up talks to buy about 130 million euros of secured bad loans and Illimity is discussing the purchase of more than 500 million euros of unsecured corporate loans, the people said.Paschi Chief Executive Officer Marco Morelli’s is pushing to clean up its balance sheet as the state-controlled lender faces pressure from the European Central Bank to improve its performance and bolster capital levels. The CEO plans to cut the NPL ratio to about 14% by the end of the year from 16.3% at the end of March.The three deals, named Papa 2, Lima and Quebec, may be finalized by the end of July, according to the people. Representatives for Paschi, Cerberus, Illimity and BofA declined to comment.Italian banks have cut non-performing loans to about 189 billion euros at the end of last year from a peak of more than 360 million euros in 2016. That’s still the biggest debt pile among European Union countries and means the ECB will continue to push banks including Paschi to accelerate their cleanups and increase coverage levels against loan losses.Last year, Paschi closed a 24.1 billion-euro securitization of NPLs, the biggest disposal of European sourced debt to date.To contact the reporters on this story: Antonio Vanuzzo in London at email@example.com;Sonia Sirletti in Milan at firstname.lastname@example.orgTo contact the editors responsible for this story: Dale Crofts at email@example.com, Ross Larsen, Vivianne RodriguesFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bank of America Corp's commodity arm Merrill Lynch Commodities Inc has agreed to pay $25 million to resolve a probe into its trading practices, the U.S. Department of Justice said on Tuesday. Between 2008 and 2014, traders employed by Merrill Lynch Commodities deceived other traders by injecting misleading information into the precious metals futures market, the DOJ said in a statement https://bit.ly/2X4aVKH. In a separate settlement with the Commodity Futures Trading Commission on Tuesday, Merrill Lynch Commodities also agreed to pay $11.5 million in fines.
Merrill Lynch's global commodities trading business agreed to pay $25 million and enter into a non-prosecution agreement with the Department of Justice on Tuesday to settle charges regarding a multi-year scheme by its precious metals traders to mislead the market for precious metals futures contracts traded on the Commodity Exchange Inc. Merrill Lynch admitted to the allegations that beginning by at least 2008 and continuing through 2014, its precious metals traders schemed to deceive other market participants by injecting materially false and misleading information into the precious metals futures market by placing fraudulent "spoof" orders for precious metals futures contracts that, at the time the traders placed thousands of fraudulent orders, they intended to cancel before execution. The intention was to manipulate the market by creating the false impression of increased supply or demand and, in turn, to fraudulently induce other market participants to buy and to sell futures contracts at quantities, prices and times that they otherwise likely would not have done so. MLCI and its parent company, Bank of America Corporation also agreed to cooperate with the government's ongoing investigation of individuals and to report to the government evidence or allegations of criminal violations. The DOJ also obtained an indictment against Edward Bases and John Pacilio, two former MLCI precious metals traders, in July 2018 related to this investigation. Those charges are pending. The Commodity Futures Trading Commission also settled charges with MLCI on Tuesday for related, parallel proceedings where MLCI agreed to pay a civil monetary penalty of $11.5 million.
The S&P; 500 inched down 5 points, or 0.2%, by 9:59 AM ET (13:59 GMT). The Dow fell 51 points, or 0.2%, and the tech-heavy Nasdaq composite slumped 21 points, or 0.3%.
Bank of America (BAC) closed at $27.97 in the latest trading session, marking a -0.55% move from the prior day.
The donations will serve a variety of Valley organizations whose missions range from hunger relief, homeless outreach, workforce development and childhood poverty.
The Federal Reserve set up a "severely adverse" scenario to test 18 of the largest U.S. banks. That scenario included a global recession with the U.S. unemployment rate jumping to 10%.
Bank of America is expanding its Student Leaders program to Buffalo and 29 other markets across the United States, including Rochester, Syracuse and Albany.
Raymond James analyst David J. Long writes that the biggest winners include Bank of America, PNC, Bank of New York Mellon, and State Street.
(Bloomberg) -- The first round of the latest Federal Reserve stress tests, released last Friday after the market closed, was well received by Wall Street analysts, who said the results generally topped expectations.Bank of America Corp., PNC Financial Services Group and trust banks BNY Mellon Corp., Northern Trust Corp. and State Street Corp. were seen as relative winners, while the Fed’s harsh view of credit cards led to disappointment for Capital One Financial Corp.All eyes now turn to Thursday’s Comprehensive Capital Analysis and Review, known as CCAR, for banks’ capital plans.The biggest banks were mixed in early Monday trading, with BofA rising as much as 0.4%, Citigroup Inc. gaining as much as 0.2%, Goldman Sachs Group Inc. rallying as much as 1.2%, Wells Fargo & Co. dropping as much as 1% and JPMorgan Chase & Co. up 0.2%.Here’s a sample of the latest commentary:Morgan Stanley, Betsy GraseckAn “easier stress test is a positive for this week’s more important CCAR test,” Graseck wrote in a note. All 11 of Morgan Stanley’s covered banks passed, with Northern Trust, Goldman Sachs Group Inc., State Street, BNY Mellon, and Citigroup screening well versus Morgan Stanley’s capital return expectations. Capital One is most at risk.Citi, Keith HorowitzThe results offer a “green light for higher capital return for most banks,” Horowitz wrote in a note. He forecasts a total payout of 103% versus 97% last year, as banks look to be “on solid footing” on the Dodd-Frank Act stress test (DFAST) results.Citi views State Street Corp., PNC Financial Services Group, Northern Trust Corp., Bank of America Corp. and BNY Mellon Corp. as among those best positioned to exceed Street payouts. The results also imply that Capital One’s total payout will improve, though there’s risk buybacks will trail consensus estimates.Goldman, Richard RamsdenResults were “modestly better than expected,” as loss rates improved across trading and all loan categories, except for card and other consumer lending, Ramsden said in a note. Banks, with the possible exception of Capital One, look to be able to meet consensus estimated payouts.Goldman attributes increased card losses to “higher stress to unemployment relative to last year, as well as higher stress on subprime card due to a Fed methodology change.” Commercial real estate loss rates were most improved, though in-line with the 2016-2017 average loss rate. Trading losses fell across the banks to $80 billion from $105 billion, with State Street and BofA seeing the biggest improvement.Credit Suisse, Susan Roth Katzke“Manageable stress” for large-cap U.S. banks means that “more manageable stress capital buffers should follow,” Katzke wrote in a note. DFAST results indicate banks “have sufficient capacity for expected capital returns.”JPMorgan, Vivek JunejaThe results show an “increase in capital cushion at most of the large U.S. banks, and all of our banks remain well positioned to continue to return sizable amounts of capital.”Bloomberg Intelligence, Alison Williams, Neil Sipes“A solid pass across the largest U.S. banks, including units of foreign banks, in annual Dodd Frank Act stress tests should generally support payout plans, in our view. U.S. banks stressed capital ratios held above required minimums for participating banks. Stressed CET1 ratios were broadly better than in year-ago tests -- with the exceptions being Northern Trust and the U.S. unit of UBS.”Atlantic Equities, John HeagertyThe results “once again underline the robustness of the large U.S. banks’ balance sheets,” Heagerty wrote in a note. BofA “appears to do very well in 2019,” while Goldman also fared better than last year. “With these results, it’s difficult to see any objections arising to submitted capital returns.”KSP Research, Kevin St. PierreThe results were better than expected, with “widespread improvement in minimum CET1 ratios and sizeable cushions to allow for consensus capital return expectations,” St. Pierre wrote in a note.St. Pierre called Wells Fargo, BofA and PNC “relative winners,” as each saw “significant increases in CET1 minimums and large buffers to accommodate above-consensus capital return if they were aggressive in their ask.” Capital One was “the relative loser,” due to the Fed’s harsh view on cards.Recommends buying bank stocks, as they’re “a compelling value,” while cautioning that “investing around CCAR results has been ineffective.”Macquarie, David KonradU.S. banks under Macquarie coverage “performed well,” with higher minimum capital levels in every category except the leverage ratio for Wells Fargo. Lower loan loss rates and trading losses helped to improve capital ratios, while assumed growth rates in RWAs (risk-weighted assets) were lower. Trading and counter-party losses dropped, led by an “abnormally large” decline for BofA.Sees potential upside for Goldman Sachs and PNC with CCAR, while BofA and Wells Fargo “also shine.” Those two have the most excess capital above stressed requirements, and may report the strongest buybacks, with a total payout ratio of 146% for Wells and 112% for BofA.RBC, Gerard CassidyDFAST demonstrated that “under a supervisory severely adverse economic scenario ... the U.S. banking industry’s capital levels can withstand massive losses and still remain above well capitalized levels.”KBW, Brian KleinhanzlThe results were “less stressful than the prior year,” as banks “saw stress losses declining and modest improvements in net income before taxes.” As a result, only one bank, JPMorgan Chase & Co., “seems at risk of not meeting our capital return expectations.”KBW expects “fewer surprises in CCAR results on Thursday, which is a modest positive for the group overall.”Raymond James, David LongLong sees BNY Mellon and State Street as winners, “given the wide spread between their projections and the Fed’s.” He also sees BofA as a winner, as their results pave the way for them to increase the dividend payout closer to peers, and as “stock repurchases remain an attractive use of capital at current levels.”(Updates share trading in fourth paragraph.)To contact the reporter on this story: Felice Maranz in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven FrommFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As the chip glut has continued, memory chip maker Micron Technology (NASDAQ:MU) has become the cheapest stock on the market. You could buy it for 3 times the previous-12-months earnings as trade looked ready to open for trading June 24 at about $33 per share.Source: Shutterstock But analysts are still not pounding the table for the stock, and for good reason. The company is due to release results for its May quarter on June 25, and it's going to be very, very bad.The latest estimate on revenue is $4.7 billion, down 40% from last May's $7.8 billion. Earnings are estimated at just 75 cents per share, down from last year's $3.10 per share.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut if that's the bottom, you're still looking at a forward price-to-earnings ratio of 8 if you buy today, which is why the average rating on the stock remains overweight. Victim of the Trade WarMicron is a victim of the U.S.-China trade war. Its memory chips are bought by Chinese companies for products that are re-exported to the U.S. This has been the global tech business model for decades now. America has the intellectual property while China has the low-cost labor and gets the environmental damage. * 7 Top S&P 500 Stocks of 2019 (So Far) But this can't continue, for two reasons. Tariffs are the first reason. But China itself is starting to pay its people more and wake up to its own environmental degradation. The game has a sell-by date.It's just ending faster with the tariffs. The launch of a Chinese memory chip pushed Micron shares to new lows. China represented 57% of Micron sales during the good times, last year. It's not just that China is investing heavily in its own memory chip capacity. The glut lets it supply its needs today through Micron competitors like Samsung Electronics (OTCMKTS:SSNLF) and SK Hynix.As a result, JPMorgan Chase (NYSE:JPM) cut their estimates on Micron again last week. But it's so cheap they still have it at overweight, and their low-end 12-month price target of $50 per share is still a 50% gain from today's $33. The Super Cycle for MicronFurther optimism comes from the "super cycle," which was the talk of the town during the boom.Low memory prices mean chips are replacing spinning disks in a host of applications. The main memory drive on my own PC is now chips, which have no moving parts and are thus more reliable. Because chips move data faster than hard drives clouds are using them, the premium paid over hard drives is disappearing. Then there are all those new markets, like intelligent speakers and the "Internet of Things," adding computers to jet engines, refrigerators, and cars.The glut has produced bargains. I bought a 512 GB chip-based hard drive last year for about $150. You can now buy a 1 TB chip drive for under $100.We're in a golden age of memory, one that is going to continue. Bulls insist the present glut will ease. Bank of America (NYSE:BAC) analysts say buy now. The Bottom Line on MU StockIf Micron had initiated a dividend before the glut, even a small one, it would be easy to recommend here. But you're betting entirely on capital gains for profit, and those can be hard to predict.How long will the glut persist? How long will the trade war go on? How much Chinese production will come into the market, and when?It's foolish to give a precise prediction, but my guess is that we're talking months instead of years. An investor in their 40s, with a five-year time horizon, will probably be very happy with a Micron investment made today.Just keep an eye on it. Prices and market conditions fluctuate.Dana Blankenhorn is a financial and technology journalist. He is the author of a new environmental story, Bridget O'Flynn and the Bear, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in JPM. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Telecom Stocks to Set on Speed Dial * 6 Stocks to Sell in the Back Half of 2019 * 7 Top S&P 500 Stocks of 2019 (So Far) Compare Brokers The post Micron Technology Is Cheap as Chips, For a While Yet appeared first on InvestorPlace.
The Federal Reserve releases the Dodd-Frank Act supervisory stress test 2019 (DFAST 2019) results which reflect the stability of the banking system.
Bank of America CEO Brian Moynihan, one of our 2019 World’s Best CEOs, thinks the U.S. economy will avoid a recession.
Choosing the right indicators can be a daunting task for novice traders. It’s a much easier process when they focus their effects into five categories.
The Fed released the first round of stress tests for this year, showing that banks have cleaned up their balance sheets. But regulatory changes meant fewer banks were tested this year.