June 22, 2012 |
Moody's Investors Service slashed the credit ratings of more than a dozen giant global banks amid worries that Europe's economic turmoil could slow both profit and growth. The downgrades, announced after the close of U.S. financial markets Thursday, included Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, Citigroup Inc. and Bank of America Corp. The move came as the 15 banks singled out by Moody's try to navigate through the European debt crisis, which could have a major effect on their trading businesses.
May 7, 2012 |
This is a story of persistence. In the case of Miriam Ramirez, it's the story of trying to obtain a much-needed loan modification from Bank of America. In BofA's case, it's the story of giving a mortgage customer the runaround for two years . Loan modifications have been an increasingly nettlesome issue as millions of homeowners struggle to make mortgage payments during the economic slump. The Obama administration has called upon banks to be more diligent in assisting customers prior to foreclosing on properties.
May 3, 2012 |
Wells Fargo & Co. has become so dominant in the mortgage business that major investors and federal regulators are worried that a financial hiccup at the giant bank could roil the already beleaguered real estate market. Wells originates 34% of all home loans - more than the combined total of the next seven biggest mortgage lenders. That's why regulators are closely watching the San Francisco bank, Paul J. Miller, a former Federal Reserve bank examiner, said Thursday. "The problem is there's a lot of systemic risk when one company has that much of the market," said Miller, an analyst specializing in mortgages at FBR Capital Markets & Co. Wells Fargo's balance sheet is viewed by analysts as being among the strongest of the nation's banks, and a major distress in its mortgage business is seen as unlikely.
April 20, 2012 |
Bank of America Corp.has become the nation's incredible shrinking bank - and shareholders don't seem to mind at all. The Charlotte, N.C., bank has slashed staff, combined business units and dialed back its massive mortgage business. These steps helped the bank post $3.6 billion in operating profit during the first three months of the year - a 40% surge - even as revenue fell 2.5%. The rebound has delivered a 60% jump in the company's battered stock price this year. Chief Executive Brian Moynihan told Wall Street on Tuesday that the bank has squeezed out more profit under a plan to divest businesses, cut costs and clean up its mortgage business.
April 19, 2012 |
Income at both Bank of America Corp. and Morgan Stanley took a tumble in the first quarter, but excluding one-time accounting charges, both banks' earnings managed to beat analyst expectations. Both stocks are now trading up. Bank of America roared out of the gate before settling a bit in morning trading, where it is now up 1.3%, or 12 cents, to $9.04 a share. Morgan Stanley also deflated a bit after starting strong, but is still trading up 3.2%, or 57 cents, at $18.23. Bank of America said its net income fell to $653 million, or 3 cents a share, from $2 billion, or 17 cents a share a year earlier.
April 18, 2012 |
The shareholder rejection of Citigroup Inc. Chief Executive Vikram Pandit's $15-million pay package has some on Wall Street wondering if the same fate might be in store for the heads of other big U.S. banks. Both Wells Fargo & Co. and Bank of America Corp. will ask shareholders in the coming weeks to vote on a "say on pay" proposal. Corporate governance experts and activist shareholders expect that these votes will capture even more attention now that Citi's shareholders have said they want Pandit's compensation to be dialed back.
CALIFORNIA | LOCAL
April 13, 2012 |
Dirma Rodriguez had five minutes to gather her things and vacate the West Adams house she and her severely disabled daughter had lived in for more than 25 years. As a property manager changed the locks, Rodriguez fluttered back and forth from the yard — where a pile of stuff lay by the kitchen stove — to her car, where her daughter, Ingrid Ortiz, sat screaming and crying. How Rodriguez and Ortiz ended up in this predicament is a long, messy story that resounds with a misery all too common in this age of foreclosure.
April 10, 2012 |
This post has been corrected. Please see note at bottom for details. Occupy D.C. activists, like those in some other cities, are adopting a new tactic. They call it “sleepful protest.” Over the weekend, Occupy D.C. activists established what they hoped would be a permanent camp outside a Bank of America branch near the White House. There was but one tent -- and it was purely symbolic, with protesters sleeping on the street instead. Activists say they're returning to Occupy's roots.
March 29, 2012 |
In a year when Bank of America Corp.'s stock plunged 58% and the company announced plans to lay off 30,000 employees, Chief Executive Brian Moynihan's compensation package more than quadrupled to nearly $8.1 million. Here's why: In 2011, the Charlotte, N.C., bank recorded $1.4 billion in profit after losing $2.2 billion the year before. So although the bank's compensation and benefits committee kept Moynihan's salary the same at $950,000, he landed $6.1 million in performance-reliant stock.