bank-of-america

Bank of America Loses (And Gains!)

cityfile · 10/16/09 01:22PM

It's not all bad news for Bank of America today. Sure, the financial giant announced a $1 billion loss for the third quarter following heavy losses in its mortgage and credit card divisions. But it made some of it back within hours. Property records filed with the city today indicate the bank sold off its corporate apartment in the Time Warner Center for $7.2 million, and it purchased the place for $6.35 million three years ago. So if you're a Bank of America shareholder and it makes you feel any better, feel free to adjust the loss downward to 999,150,000. [NYT, NYO]

Ken Lewis Comes Up Empty

cityfile · 10/15/09 02:45PM

Ken Lewis, the outgoing CEO of Bank of America, won't be collecting a salary or bonus for 2009, according to the Wall Street Journal. Why? Because the Treasury Department's pay czar, Ken Feinberg, demanded it and the bank conceded rather than put up a fight. Don't shed any tears for Lewis: His retirement package is still worth between $69.3 million and $120 million. But there's reason to believe Citigroup chief executive Vikram Pandit is quaking in his Ferragamo loafers this evening:

John Thain's Quest for Redemption Continues

cityfile · 10/02/09 08:37AM

Former Merrill Lynch CEO John Thain is no friend of Ken Lewis, the outgoing chief executive of Bank of America. Thain worked with Lewis last year to engineer the merger of Merrill and BofA, but was kicked to the curb shortly after the deal was complete and almost instantly turned into the fall guy for the messy merger, at least in the version of events that Lewis recounted to analysts, reporters, and government officials.

Don't Weep For Ken Lewis

cityfile · 10/01/09 12:31PM

Outgoing Bank of America CEO Ken Lewis has $53 million in pension benefits waiting for him when he leaves. [Fortune]

Ken Lewis Is Leaving with His Head Held High

cityfile · 10/01/09 09:33AM

Yesterday afternoon, Bank of America CEO Ken Lewis announced that he plans to "retire" at the end of the year. And despite the fact he's facing ongoing probes by Congress, the SEC, and the attorneys general in New York and Connecticut over BofA's acquisition of Merrill Lynch, he's spent months dealing with withering criticism by Wall Street analysts and shareholders, and he's leaving the bank without a successor in place, Lewis is still maintaining that he—and he alone, without any pressure on him whatsoever!—arrived at the decision to retire. Per the farewell letter he sent out yesterday:

Biggest Lawsuit Ever

cityfile · 09/25/09 11:48AM

Many people are pissed off at bankers in the wake of the financial crisis. Dalton Chiscolm is angrier than most. He's filed a lawsuit against Bank of America for "$1,784 billion trillion," damages he says he deserves because BofA didn't deposit a couple of checks into his checking account. (As for how much "$1,784 billion trillion" actually is, it's approximately 9 trillion times more than Bank of America is worth.) The good news: The judge assigned to the case is Denny Chin who presided over Bernie Madoff's $65 billion Ponzi scheme case, so he's used to big numbers. [Daily Finance, Dealbreaker]

Nemazee's Scheme Now in the Nine Figures

cityfile · 09/21/09 02:40PM

Hassan Nemazee, the banker and Democratic mega-fundraiser who was indicted last month for allegedly using forged documents to obtain a $74 million loan from Citibank—and who is currently under house arrest at his Park Avenue apartment—is facing new charges. He's been indicted for bank fraud and "aggravated identity theft" as part of what prosecutors describe as a $292 million Ponzi scheme that involves Bank of America and HSBC, too. Also, in case you've been mispronouncing his name all this time, the AP points out it's hah-SAHN' nah-MAH'-zee. Please make a note of it. [AP, Reuters]

SEC's Settlement No Good, Says Judge

Andrew Belonsky · 09/15/09 05:00AM

A judge rejected a $33m settlement that would have ended the SEC's lawsuit against Bank of America, which is accused of not using enough judgment in giving executive bonuses. The settlement, said the judge, was unfair and inadequate. Shocker. [NYT]

BofA's Bad Day in Court

cityfile · 08/11/09 07:56AM

So much for Bank of America's sweetheart settlement with the Securities and Exchange Commission. At a hearing yesterday, Judge Jed Rakoff declined to approve the deal that the bank struck with the SEC a few weeks ago, allowing it to pay a mere $33 million to settle charges that it had failed to disclose Merrill Lynch's plans to pay out billions of dollars in bonuses on the eve of their merger.

BofA Gets Sued, Settles

cityfile · 08/03/09 10:15AM

That sure was quick. This morning, the SEC filed suit against Bank of America, accusing it of lying to investors when it announced that newly-acquired Merrill Lynch wouldn't pay out any year-end bonuses. (In fact, Bank of America had already signed off on $5.7 billion in Merrill payouts.) Now the bank has settled the charges—"without admitting or denying the allegations," of course—for a modest $33 million. [NYT]

Wall Street: Thursday Edition

cityfile · 06/25/09 09:03AM

• Just in case you've missed the excitement on TV, Ben Bernanke appeared on Capitol Hill today to testify about Bank of America's acquisition of Merrill Lynch. Lawmakers grilled him, Bernanke played defense: quality entertainment as usual! [NYT, WSJ]
• Financier Allen Stanford appeared in court today and pleaded not guilty to charges he swindled investors out of $7 billion. [WSJ]
• The job market hasn't improved: The number of Americans filing jobless claims rose last week to the highest level in more than a month. [CNN]
• Good news! AIG is reducing its debt with the Fed by $25 billion. [NYT]
Andrew Cuomo is recusing himself from the investigation into the hedge fund that handed his finances and is now tied to Cuomo's kickback query. [BN]

Wall Street: Wednesday Edition

cityfile · 06/24/09 08:03AM

• There's a shortage of banking industry CEOs—decent ones, at least—which explains why Vikram Pandit is still in charge at Citigroup and Ken Lewis is still running the show at Bank of America. "The best players won't risk their careers going to a troubled enterprise," explains one recruiting expert. [WSJ]
Andrew Cuomo has been investigating pension fund corruption for the past few months. Now his own ties to just such an entity are raising questions. [BN]
• Wanna invest in a hedge fund? You're in luck. A number of them are looking to diversify their investor bases and are now targeting the middle class. [NYP]
• Stocks rose this morning ahead of a report by the Fed this afternoon. [CNN]
• Good news for JPMorgan Chase: It's "the world's strongest bank." [DB]
• Good news for Barclays: Its name will grace a Brooklyn subway station. [NYT]
• Jeffry Picower was once considered one of Bernie Madoff's victims. Not so much any longer, now that it appears he withdrew as much as $5 billion from his various Madoff accounts between 1995 and 2008. [ProPublica]

Bonus Outrage Is Back! Or Not!

cityfile · 06/18/09 10:07AM

It's been a couple of months since we've had a juicy Wall Street bonus scandal. The Post is hoping to reignite the drama today by reporting that Bank of America—which was not one of the financial institutions that returned its bailout cash this week—is continuing to hand out big checks to senior execs. Bank of America insists it has no choice, and that if it doesn't hand out the money, people will flee the firm and work someplace else. You can decide for yourself who you want to feel most sorry for today: the American taxpayer, who's funding these payouts; BofA employees who need to be overcompensated to get them to work at Wall Street's equivalent of the Titantic; or the poor BofA public relations person who doesn't qualify for a big bonus but clearly has the crappiest job at the bank. [NYP]

Wall Street: Friday Edition

cityfile · 06/12/09 08:30AM

• BlackRock has reached a deal to buy Barclays Global Investors for $13.5 billion, making BlackRock the world's largest money management firm. [WSJ]
• Lawmakers grilled Bank of America chief Ken Lewis in Capitol Hill yesterday, although he defended his decision to go ahead with the acquisition of Merrill Lynch and placed blame on Ben Bernanke and Hank Paulson. [NYT, WSJ]
John Paulson's hedge fund, which made $3+ billion betting the housing market would collapse, is now scooping up lots of distressed debt. [BN]
• Goldman was an investment bank before becoming a commercial bank. Now that it's free from the bailout, it may go back to being an I-bank. [Reuters]
• US households lost $1.33 trillion of wealth in the first 3 months of '09. [DB]
• Foreclosures fell during May, not that things have improved much. [CNN]

Wall Street: Thursday Morning

cityfile · 06/11/09 07:14AM

• Showdown in DC: Bank of America CEO Ken Lewis is testifying before a House committee today and getting a pounding, as expected. [WSJ, Dealbreaker]
• Will Citigroup ever get its house in order? FDIC boss Sheila Bair would like some answers, not that the board—or Vikram Pandit—have any. [NYT]
Jim Simons held talks recently to sell a stake in his hedge fund, Renaissance Technologies, but has decided against retiring for the time being. [WSJ]
• BlackRock is close to a deal to acquire Barclays Global Investors for $13 billion; the deal would make the Larry Fink-led company the world's largest money manager, with $2.8 trillion in assets under management. [WSJ]
• JPMorgan Chase is acquiring the piece of Glenn Dubin and Henry Swieca's Highbridge Capital Management that it does not already own. [DB]
• AIG is moving out of its downtown HQ now that the company has sold off the real estate to a Korean bank and a US developer for $100+ million. [FT]
• Better than expected unemployment data and retail sales figures have lifted the major markets this morning. [CNN, BN, CNN]