Thursday, July 7, 2011

BofA to take $13 billion more in charges: Bernstein


this originally appeard here.  Maybe this is why all those puts were bot yesterday... 

Bank of America will take another $13 billion in charges related to pending settlement with private label mortgage-backed securities investors, Sanford C Bernstein said.


The brokerage sees the largest U.S. bank by assets posting a loss of 67 cents a share in the second quarter. It had earlier forecast a profit of 29 cents a share.
A group of public pension funds and a group of bondholders have challenged Bank of America Corp's $8.5 billion settlement with holders in soured mortgage-backed securities, which the bank expects will result in $20 billion of charges and a second-quarter loss.
The bank was hit hard by toxic home loans after BofA bought mortgage lender Countrywide Financial in 2008, just as the housing market bubble was bursting, ensuing billions of dollars in losses.
Bernstein also cuts its earnings view on top U.S. investment banks Morgan Stanley and Goldman Sachs, citing the prolonged weakness in U.S. housing, negative impact of European debt and turmoil in the Asianmarkets.



http://seaofopportunity.blogspot.com/ 


 *Special thanks to Option Radar, BMO Capital, MEB Options, LiveVolPro, CBOE, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow! 


 No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

1 comment:

  1. eToro is the #1 forex broker for newbie and professional traders.

    ReplyDelete