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Breakingviews: Beyond BofA's legal woes

Thursday, August 07, 2014 - 03:21

Ren Holding and Antony Currie discuss how relieved CEO Brian Moynihan will be to get the mooted $16 bln U.S. settlement behind him, and how much he still has to do to earn half-decent returns.

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Well another day another dollar sixteen and a half billion of them. Them from Bank of America and its tentative settlement with the US government at several states over dodging mortgages. Antony Currie an important part of this penalty is that apparently big chunk of it is actual cash. -- nine billion dollars worth that's a lot of mullah. Yeah good thing bad thing how does this play well I think you know it would be a -- it's a good thing to get an apple way. Brian -- is becoming ever since -- About a month circus Chinese -- city about seven billion JPMorgan up thirteen billion -- other retailers -- -- two different numbers -- what you go to -- Hough -- number and you -- the number of full right homeowner relief which side -- inmates' cases around seven billion at least that's what that the -- the moment you know and up. The nine billion is what comes out the plans -- for the seven billion. Now that's -- -- future earnings -- -- just friends come out what they've already written down so they might not take a big -- it's more political thing and -- in the reserves for disseminate as you say they've they've known this was coming yet. For awhile they've taken -- into account. Is it is it in the range of what they were expect it's a little -- you wouldn't be quite as big this eyes I think last year frankly they go to a little bit Cokie. They didn't put an exact shipping losses -- six billion us through 2012 but not right they did that -- not wait quite a freeze won the first half of the -- and so Kuwait ten billion you know covered this and others including this up with yet as of today so. Speaking analysts is may -- some -- billion they've got set aside that ten million. I may still have some from previous allegations Acosta for us on where's all this liability coming from and it's not just be today it's. Countrywide like Merrill Merrill Lynch and countrywide I think controversies is the bulk of it BofA is -- that -- before these -- is not a big. Radicals have a lot of put senator is on his hooks them up the good thing that's it if they get this out the way. -- go virtually all of its mortgage she's happily that we. We know -- he is on the all right on the stat -- has taught at a hefty bill the total bill I think they're up where around. -- The fifty billion or something -- this -- -- -- -- buybacks in the nation yet but buys that -- back to if you will just you know that -- 5060 billion. -- says the biggest movements. Not a good thing is what this means for its earnings house. Which hits it right and that has bad in the future right right it didn't have to soak away as much. The problem with the united is it's still trying to cut costs and still suffering a little banks off from interest rates being so who lives. I still say still gonna suntrust what was most isms books confident. At a quick look at this morning if you get to to get to that target they're looking at 14%. Return intentionally -- Right they go to acts around to being of course that means that things if you look at different -- if my if they would be as efficient as well solid -- Is on the -- they have to add about two and a half billion of course. Got some big numbers then we'll get some relief in the future as interest rates go up right gritty you'll licking it. As possible costs and an interest in -- will be watching that story. As well as others in the meantime stay tuned for more breaking news tomorrow.

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Breakingviews: Beyond BofA's legal woes

Thursday, August 07, 2014 - 03:21