BAC

Tyler Durden's picture

Frontrunning: March 8





  • Firms Send Record Cash Back to Investors (WSJ)
  • And in totally opposite news, from the same source: Firms Race to Raise Cash (WSJ)
  • China warns over fresh currency tensions (FT)
  • Hollande faces pressure over jobs pledge (FT)
  • Obama efforts renew ‘grand bargain’ hopes (FT)
  • Shirakawa BOJ Expansion Gets No Respect as Stocks Cheer Exit (BBG)
  • Japan’s Nakao Defends Easing as China’s Chen Expresses Concern (BBG)
  • Boeing Had Considered Battery Fire Nearly Impossible, Report Says (WSJ)
  • ECB Chief Plays Down Italy Fears (WSJ)
  • China moves to make its markets credible (FT)
  • Euro Group head says UK at risk of 'sterling crisis' (Telegraph)
 


Tyler Durden's picture

Frontrunning: March 6





  • Kuroda to Hit ‘Wall of Reality’ at BOJ, Ex-Board Member Says (BBG)
  • Venezuelans mourn Chavez as focus turns to election (Reuters)
  • South Korea says to strike back at North if attacked (Reuters)
  • Milk Powder Surges Most in 2 1/2 Years on New Zealand Drought (BBG)
  • As Confetti Settles, Strategists Wonder: Will Dow's Rally Last?  (WSJ)
  • Pollution, Risk Are Downside of China's 'Blind Expansion' (BBG)
  • Obama Calls Republicans in Latest Round of Spending Talks (BBG)
  • Ryan Budget Plan Draws GOP Flak (WSJ)
  • Samsung buys stake in Apple-supplier Sharp (FT)
  • China Joining U.S. Shale Renaissance With $40 Billion (BBG)
  • Say Goodbye to the 4% Rule  (WSJ)
  • Traders Flee Asia Hedge Funds as Job Haven Turns Dead End (BBG)
  • Power rustlers turn the screw in Bulgaria, EU's poorest country (Reuters)
 


Tyler Durden's picture

Frontrunning: February 27





  • Wal-Mart's Sales Problem—And America's (WSJ)
  • Investors fret that Italy may undermine ECB backstop (Reuters)
  • Monti Government Mulls Delaying Monte Paschi Bailout (BBG)
  • Norway Faces Liquidity Shock in Record Redemption (BBG)
  • ECB's Praet Says Accommodative Policy Could Lose Effectiveness (BBG)
  • EU Chiefs Tell Italy There’s No Alternative to Austerity (BBG)
  • New Spate of Acrimony in congress As Cuts Loom (WSJ)
  • BOE's Tucker hints at radical growth moves (FT)
  • Kuroda Seen Getting DPJ Vote for BOJ, Iwata May Be Opposed (BBG)
  • Russian Banks Look to Yuan Bond Market (WSJ)
  • Dagong warns about rising debt (China Daily)
  • Italy Election Impasse Negative for Credit Rating, Moody’s Says (BBG)
 


Tyler Durden's picture

Frontrunning: February 25





  • Risk of instability hangs over Italy poll (FT), Protest votes add to uncertainty in close Italy election (Reuters), and... Risk On
  • Czech inspectors find horsemeat in IKEA meatballs (Reuters)
  • China’s Slower Manufacturing Casts Shadow Over Recovery (Bloomberg)
  • So much for reform: China Prepares for Government Shuffle as Zhou Stays at PBOC (Bloomberg)
  • France to pause austerity, cut spending next year instead: Hollande (Reuters)
  • Sinopec to buy stake in Chesapeake assets for $1.02 billion (Reuters)
  • White House warns states of looming pain from March 1 budget cuts (Reuters)
  • China Quietly Invests Reserves in U.K. Properties (WSJ)
  • Osborne Keeps Austerity as Investors See Downgrade as Late (BBG)
  • South Korea's new president demands North drop nuclear ambitions (Reuters)
  • Russia accuses U.S. of double standards over Syria (Reuters)
 


Tyler Durden's picture

Frontrunning: February 20





  • Office Depot Agrees to Buy Officemax for $13.50/Shr in Stock
  • Bulgarian Government Resigns Amid Protests (WSJ)
  • Rome will burn, regardless of Italian election result (Reuters)
  • Abe Says No Need for Foreign Bond Buys Under New BOJ Chief (BBG)
  • Rhetoric Turns Harsh as Budget Cuts Loom (WSJ)
  • Muddy Waters Secret China Weapon Is on SEC Website (BBG)
  • Business Loans Flood the Market (WSJ)
  • Staples May Be Winner in Office Depot-OfficeMax Merger (BBG)
  • Fortescue Won't Pay Dividend, Profit Falls (WSJ)
  • Key Euribor rate on hold after rate cut talk tempered (Reuters)
  • FBI Probes Trading in Heinz Options  (WSJ)
  • Spain Said to Impose Yield Ceiling on Bond Sales by Regions (BBG)
  • BOK’s Kim Signals No Rate Cut Needed Now as Outlook Improves (BBG)
 


Tyler Durden's picture

Tale Of Two Markets (Again)





The US equity market continues to boldly go where no other market is willing to go (Dow outperforming EuroStoxx by 850bps this year). European stocks and bonds (+30-45bps) are down notably on the week (and year in some cases); Treasury yields are 4-6bps lower on the week; the USD is up 0.6% (as EUR bleeds a little lower into tomorrow's ECB); and Gold is up 0.6% (oddly with the USD) on the week; but US equities are unchanged with Staples and Industrials holding gains on the week. Today saw credit markets and treasuries pushing notably risk-off as stocks oscillated around unch on the week - pushing to the day's highs into the close on the back of yet another vol-selling ramp. Equity volume was average and trade size was lower than average as cash S&P and Dow managed small gains and Nasdaq a small loss as AAPL gave back its 'buyback rumor' gains. We've seen this EUR-USA disconnect before...

 


rcwhalen's picture

Tail Risk: Kamala Harris Declares War on Lenders, Loan Servicers in CA





Work in the mortgage market?  Never read about Kamala Harris or the  CA "Home Owner Bill of Rights?"  Read on....

 


Tyler Durden's picture

The Frightening Truth Behind Bank Of America's "Earnings"





Over a year ago we noted that when it comes to Bank of America "earnings", items which traditionally are classified as non-recurring, one-time: primarily litigation and mortgage related charges, have now become recurring, and all the time, courtesy of the worst M&A transaction of all time - the purchase of Countrywide and its horrifying mortgage book. Today, this is finally being appreciated by the market where even the pompom carriers have said that it is time to start ignoring the endless addbacks and focus on actual earnings. The same cheerleaders have also, finally, understood that the primary source of "profitability" at this lawsuit magnet of a company, is nothing other than the accounting trick known as loan loss reserve releases - not actual profits but merely bottom line adjustments whose purpose is to mitigate the impact of quarterly charge offs on loans gone horrible bad. Remember that Bank of America has some $908 billion in total consumer loans and leases, and every day hundreds of millions of these go 'bad' and ultimately have to be discharged, offset by "hopes" that the future will improve. This hits both the balance sheet and the P&L. So, if one steps back and ignores the non-recurring, one-time noise, what emerges? A truly frightening picture.

 


Tyler Durden's picture

Bank Of America Earnings Plagued By Legacy Countrywide Woes Offset By $900 Million In Loan Loss Reserve Releases





Bank of America just reported yet another quarter marked by a bevy of "one-time" charges, which have now become normal course of business, even as NIM declined Y/Y, and sales and trading revenues declined sequentially. Loan loss reserve releases of $900 million more than offset the declining Noninterest income, and contributed to a positive pre-tax net income number. The biggest threat continue to be private Rep and Warrant outstanding claims which increased by almost 42 billion in the quarter to a total of $12.3 billion.

 


Tyler Durden's picture

FleeceBook: Meet JP Morgan's Matt Zames





Previously, in our first two editions of FleeceBook, we focused on "public servants" working for either the Bank of International Settlements, or the Bank of England (doing all they can to generate returns for private shareholders, especially those of financial firms). Today, for a change, we shift to the private sector, and specifically a bank situated at the nexus of public and private finance: JP Morgan, which courtesy of its monopolist position at the apex of the Shadow Banking's critical Tri-Party Repo system (consisting of The New York Fed, The Bank of New York, and JP Morgan, of course) has an unparalleled reach (and domination - much to Lehman Brother's humiliation) into not only traditional bank funding conduits, but "shadow" as well. And of all this bank's employees, by far the most interesting, unassuming and "underappreciated" is neither its CEO Jamie Dimon, nor the head of JPM's global commodities group (and individual responsible for conceiving of the Credit Default Swap product) Blythe Masters, but one Matt Zames.

 


Tyler Durden's picture

Frontrunning: January 9





  • A Bold Dissenter at the Fed, Hoping His Doubts Are Wrong (NYT)
  • China and Japan step up drone race as tension builds over disputed islands (Guardian)
  • How Mario Draghi is reshaping Europe's central bank (Reuters)
  • Merkel Economy Shows Neglect as Sick Man Concern Returns (BBG)
  • US oil imports to fall to 25-year low (FT)
  • China Loan Share at Record Low Shows Financing Risks (BBG)
  • Dimon Says Some JPMorgan Execs ‘Acted Like Children’ on Loss (BBG) - children that reveleased who 'excess reserves' are truly used
  • Fed injects new sell-off risk into Treasuries (FT) - really? So the Fed will stop monetizing the US deficit some time soon?
  • Obama aide presses Republicans to accept more tax revenues (Reuters)
  • Ex-SAC analyst named 20 alleged insider traders (FT)
  • BOJ easing bets help dollar regain ground vs yen (Reuters)
  • Goldman Sachs Said to Be Part of Fed-Led Foreclosure Settlement (BBG)
  • Venezuela postpones inauguration for cancer-stricken Chavez (Reuters)
 


rcwhalen's picture

Q4 2012 Bank Earnings Outlook -- Lower Mortgage Volumes Suggest Anything?





If the large TBTF banks are really being forced  out of the mortgage business, then just how will we achieve these revenue growth rates?  How indeed.

 


Tyler Durden's picture

BofA Settles With Fannie Mae Over Reps And Warranties For $10 Billion, To Incur $2.7 Billion Pretax Hit





As had been widely expected, days before a National Mortgage/Foreclosure settlement is formally announced, the most exposed banks have started tying up the loose ends with the other nationalized entities. Sure enough, moments ago Bank of America just announced a $10 billion settlement with one of the GSEs - Fannie, whose CEO Tim Mayopoulous was BofA's former General Counsel and one of the people scapegoated by Ken Lewis. As just reported, as part of the agreement to settle representations and warranties claims, Bank of America will make a cash payment to Fannie Mae of $3.6 billion and also repurchase for $6.75 billion certain residential mortgage loans sold to Fannie Mae, which Bank of America has valued at less than the purchase price. These actions are expected to be covered by existing reserves and an additional $2.5 billion (pretax) in representations and warranties provision recorded in the fourth quarter of 2012. Bank of America also agreed to make a cash payment to Fannie Mae to settle substantially all of Fannie Mae’s outstanding and future claims for compensatory fees arising out of past foreclosure delays. This payment is expected to be covered by existing reserves and an additional provision of $260 million (pretax) recorded in the fourth quarter of 2012. Bottom line: hit to Q4 pretax earnings will be $2.7 billion. Yet, as BAC notes, despite the settlement, "Bank of America expects earnings per share to be modestly positive for the fourth quarter of 2012." Which means prepare for one whopper of a loan-loss reserve release for the quarter as more "earnings" are nothing but bookkeeping gimmicks.

 


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