|Bid||0.00 x 1100|
|Ask||0.00 x 1300|
|Day's Range||18.70 - 19.80|
|52 Week Range||0.70 - 28.59|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||16.55|
Warren Buffett's Berkshire Hathaway Inc is seeking permission from the Federal Reserve to boost its stake in Bank of America Corp above the 10% level, according to an application document provided by the Fed on Tuesday. Bloomberg first reported the application on Tuesday. Shares of BofA gained 3% after the report came out, dipping slightly to close at 2.02%.
Over the past few days, we've seen several bullish bets suggesting that Bank of America stock could keep climbing higher after earnings tomorrow.
Bank of America Corp (NYSE: BAC) shares traded higher on Tuesday but remain down slightly overall in the past six months after global economic uncertainty prompted the Federal Reserve to begin cutting interest rates. Sellers are concerned about Bank of America’s ability to maintain net interest margins as yield curves flatten. Despite the price weakness, some large options traders are making some big bets on Bank of America ahead of the company’s earnings report expected out on Wednesday morning.
(Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. is seeking permission from the Federal Reserve to potentially increase its stake in Bank of America Corp. to more than 10%, a level that often triggers a regulatory review. The bank’s shares rallied.Berkshire, which disclosed in July that it had hit that threshold, filed an application with the Fed in recent weeks making a variety of assurances to show that it will passively invest in the bank, according to a copy of the application provided by the regulator.Berkshire “may decide to purchase additional shares of common stock of Bank of America based on its evaluation of the investment opportunity presented by such purchases,” the conglomerate wrote in the filing signed by Buffett, without specifying how many shares it might look to purchase.Buffett struck a deal eight years ago to invest $5 billion in Bank of America for preferred stock and warrants, helping shore up confidence in the lender as it faced losses tied to subprime mortgages. In 2017, the billionaire investor swapped the preferred shares for a $16 billion-plus common-stock holding. Bank of America now ranks as Berkshire’s second-largest equity bet, behind Apple Inc.Bank of America shares climbed as much as 3.8% after the news of the filing. They were up 2.7% at 1:37 p.m. in New York. The lender is set to report third-quarter results Wednesday.Buffett’s company said in the Fed filing that it doesn’t have any plans to sell Bank of America’s assets, merge it with any company or make any other significant change in its business strategy and corporate structure.“We have appreciated Berkshire’s ownership for the past seven-plus years,” Bank of America said in a statement. “Through our success, Berkshire and other long-term shareholders have benefited. We look forward to Berkshire’s support as we continue to drive responsible growth at Bank of America.”Berkshire said as of July 17 that the holding was 950 million shares, a stake that would be valued at more than $27 billion as of Monday’s close. While Berkshire had been building its stake in Bank of America in recent years, the bank’s stock repurchases also helped push the Omaha, Nebraska-based conglomerate’s stake above the 10% level, according to the July regulatory filing.U.S. regulators tend to review relationships between investors and banks in which a shareholder could be viewed as having control over a lender. According to proxy statements and quarterly regulatory filings, the only other investor in one of the six largest U.S. banks that tops the 10% threshold is Mitsubishi UFJ Financial Group Inc.’s 24% holding in Morgan Stanley, a remnant of the financial crisis.With about $200 billion of total equity investments to manage, it’s not the first time Buffett has bumped up against the ownership threshold. In 2016, he ran up against the 10% level with another bank, Wells Fargo & Co, as it repurchased shares. Berkshire applied to the Fed, but later said it would cut its Wells Fargo stake because the central bank said the larger stake would limit Berkshire’s ability to do business with the lender.With Berkshire’s American Express Co. stake, Buffett agreed in the 1990s to be a passive shareholder and later received approval to increase that investment to as much as 24.99%, a level he has yet to reach.The rules that determine whether an investor is deemed to have control over a bank may soon change. The Fed has submitted a proposal to clarify the factors and thresholds that determine control.(Adds BofA comment in seventh paragraph, updates share price in fifth.)\--With assistance from Lananh Nguyen, Daniel Taub and David Scheer.To contact the reporter on this story: Katherine Chiglinsky in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bloomberg first reported the application on Tuesday. Shares of BofA gained 3% after the report came out, dipping slightly to close at 2.02%. Berkshire, which has a 9.96% stake in BofA, filed an application with the Fed this month, assuring the regulator that it will passively invest in the bank and will not try to force a change in strategy or corporate structure.
Earnings from JPMorgan, J&J; and United Health lifted the Dow Jones today, as stocks powered into the start of the Q3 reporting season.
Earnings reports are being released today and they will continue on Wednesday with Bank of America , one company that Jim Cramer is keeping an eye out for. In this daily bar chart of BAC, below, we can see that prices have been stuck in a sideways trading range all year. Followers of moving average crossovers have been buying and selling and buying and selling as prices have moved up and down around the 50-day and 200-day moving averages.
JPMorgan will lead things off for the banks Tuesday and Bank of America will follow up on Wednesday before the open. JPMorgan is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells JPM?
In 2011, Warren Buffett invested $5 billion in Bank of America (BAC). BAC is now Berkshire Hathaway's second-largest holding and is worth about $27 billion.
Exxon Mobil Corp has appointed Bank of America Merrill Lynch to run the sale of its Malaysian oil and gas assets as the U.S. firm accelerates a vast disposal program, banking and industry sources said. The Malaysian assets, which include stakes in two large fields, are expected to fetch up to $3 billion, the sources said.
Vail Resorts (MTN) mergers and extensive marketing strategies bode well. However, high operating expenses and weather disruptions are pressing concerns.
has seen its potential damages almost double, long after most of its main rivals settled their cases. An appellate court last month ruled in favour of the bank’s challengers, allowing some of the cases to proceed to trial.
On October 1, Credit Suisse's Suresh Tantia told CNBC that the equity market will rebound from the current levels. However, the S&P; 500 declined by 1.2%
Online broker fee wars could hurt earnings at Bank of America, Wells Fargo and Morgan Stanley while posing a risk to asset-based fees. BAC stock fell.
(Bloomberg) -- Bank of America Corp.’s Merrill Lynch unit was among lenders getting a share of the profit of clients’ so-called Cum-Ex trades, and tried to hide payments linked to the controversial tax-driven practice by masking them via unrelated future transactions, a former trader said in a German court.Like other investment banks acting as prime brokers for Cum-Ex investors, Merrill Lynch charged the “industry standard” of 4% of the money generated through the double tax refunds, the ex-trader said Wednesday. The man, referred to as Darren T. because he can’t be identified under local law, appeared as a witness at a Bonn court in the case against two former bankers charged over the trades.While always collecting “precisely 4%,” the banks didn’t treat the amount as a share of the profit but hid the money as service fees, such as charges for custody, clearing and leverage, he said. Merrill Lynch didn’t even want to charge regular fees, instead having customers pay it via an unrelated futures contract, Darren T. said.“I think this way Merrill Lynch was not only hiding and veiling this to the outside world but probably internal groups were hiding it from each other,” the former trader said.The testimony is part of the first criminal trial over Cum-Ex in Germany, where the scandal -- orchestrated mainly by London investment bankers -- is the biggest tax heist in the country’s history. The 45-year-old is the initial witness in the trial against former bankers Martin Shields and Nicholas Diable. They are charged with helping to organize deals that led to more than 400 million euros ($437 million) in lost taxes.Bill Halldin, a spokesman for Bank of America, and Macquarie spokesman Stephen Moir declined to comment.Darren T. worked on Cum-Ex deals at Macquarie Bank from 2005 until 2009, when he joined Zeta Financial Partners. Among other roles in the deals, Macquarie acted as a prime broker for which it also charged the 4%, he said.ZFP was a company set up by former Macquarie bankers and heavily involved in Cum-Ex. Merrill Lynch was the prime broker for a ZFP client, according to Darren T.Macquarie would charge fees under various labels but together they would always add up to exactly 4% of the dividend, he said. Other banks had similar arrangement, he said. None of these methods were ever documented, according to the trader.Merrill Lynch collected the fees via unrelated future transactions, he said, citing an example on derivatives related to French equities. Corresponding buy and sell futures would be traded, allowing Merrill to make a profit and the counterpart a loss.Investec Plc also acted as a prime broker. Its interdeal broker priced in the 4% for the bank when the Cum-Ex deals were unwound and shares transferred back, the ex-trader said. Investec spokesman Luke O’Mahony declined to comment.The Bonn trial is scheduled to last through early next year.(An earlier version of this story was corrected to fix the relationship between Merrill and ZFP.)(Adds Investec declining to comment in penultimate paragraph)\--With assistance from Donal Griffin.To contact the reporter on this story: Karin Matussek in Berlin at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Aarons at email@example.com, Christopher Elser, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A U.S. judge on Monday dismissed a proposed class action lawsuit against several large banks for allegedly rigging the market for Mexican government bonds, according to a court filing. JPMorgan Chase & Co, HSBC Holdings Plc, Citigroup Inc and Bank of America Corp are among 10 financial companies that had been accused in the lawsuit of benefiting from manipulating the market for Mexican government bonds. U.S. District Judge Paul Oetken in Manhattan said in his opinion he was dismissing the lawsuit because the plaintiffs - eight pension funds - failed to allege a direct link between each defendant and a conspiracy.
Morgan Stanley and Bank of America Corp are expanding the employee-benefits services they offer, hoping to gain market share in the dull-but-reliable business of managing wealth for companies and employees. The banks, which operate the two biggest U.S. wealth management firms, are focused on different parts of the benefits business, executives told Reuters. Morgan Stanley is building on its $850 million purchase of Solium Capital, which manages employee stock plans for some 3,400 companies and 2.7 million employees.
Investing in systems while cutting expenses is among the challenges facing the longtime banking executive. But patience for investors should pay.
Vail Resorts (MTN) fourth-quarter fiscal 2019 results gain from growth in each segment. The company also benefited from the robust performance at Whistler Blackcomb.
Carnival's (CCL) top-line growth in third-quarter fiscal 2019 can be attributed strength in passenger tickets, and onboard and other as well as tour and other businesses.
Warren Buffett’s Berkshire Hathaway is reportedly seeking permission from the Federal Reserve to boost its stake in Bank of America above the 10% level. Yahoo Finance’s Myles Udland, Brian Sozzi and Dan Roberts discuss on The Final Round.