BAC Nov 2019 28.500 call

OPR - OPR Delayed price. Currency in USD
1.4800
+0.3400 (+29.82%)
As of 10:38AM EDT. Market open.
Stock chart is not supported by your current browser
Previous close0.8400
Open1.2800
Bid1.5300
Ask1.5400
Strike28.50
Expiry date2019-11-01
Day's range1.1700 - 1.4800
Contract rangeN/A
Volume67
Open interestN/A
  • Bloomberg

    Warren Buffett Seeks Fed Leeway to Boost Stake in Bank of America Past 10%

    (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. is seeking permission from the Federal Reserve to potentially increase its stake in Bank of America Corp. to more than 10%, a level that often triggers a regulatory review. The bank’s shares rallied.Berkshire, which disclosed in July that it had hit that threshold, filed an application with the Fed in recent weeks making a variety of assurances to show that it will passively invest in the bank, according to a copy of the application provided by the regulator.Berkshire “may decide to purchase additional shares of common stock of Bank of America based on its evaluation of the investment opportunity presented by such purchases,” the conglomerate wrote in the filing signed by Buffett, without specifying how many shares it might look to purchase.Buffett struck a deal eight years ago to invest $5 billion in Bank of America for preferred stock and warrants, helping shore up confidence in the lender as it faced losses tied to subprime mortgages. In 2017, the billionaire investor swapped the preferred shares for a $16 billion-plus common-stock holding. Bank of America now ranks as Berkshire’s second-largest equity bet, behind Apple Inc.Bank of America shares climbed as much as 3.8% after the news of the filing. They were up 2.7% at 1:37 p.m. in New York. The lender is set to report third-quarter results Wednesday.Buffett’s company said in the Fed filing that it doesn’t have any plans to sell Bank of America’s assets, merge it with any company or make any other significant change in its business strategy and corporate structure.“We have appreciated Berkshire’s ownership for the past seven-plus years,” Bank of America said in a statement. “Through our success, Berkshire and other long-term shareholders have benefited. We look forward to Berkshire’s support as we continue to drive responsible growth at Bank of America.”Berkshire said as of July 17 that the holding was 950 million shares, a stake that would be valued at more than $27 billion as of Monday’s close. While Berkshire had been building its stake in Bank of America in recent years, the bank’s stock repurchases also helped push the Omaha, Nebraska-based conglomerate’s stake above the 10% level, according to the July regulatory filing.U.S. regulators tend to review relationships between investors and banks in which a shareholder could be viewed as having control over a lender. According to proxy statements and quarterly regulatory filings, the only other investor in one of the six largest U.S. banks that tops the 10% threshold is Mitsubishi UFJ Financial Group Inc.’s 24% holding in Morgan Stanley, a remnant of the financial crisis.With about $200 billion of total equity investments to manage, it’s not the first time Buffett has bumped up against the ownership threshold. In 2016, he ran up against the 10% level with another bank, Wells Fargo & Co, as it repurchased shares. Berkshire applied to the Fed, but later said it would cut its Wells Fargo stake because the central bank said the larger stake would limit Berkshire’s ability to do business with the lender.With Berkshire’s American Express Co. stake, Buffett agreed in the 1990s to be a passive shareholder and later received approval to increase that investment to as much as 24.99%, a level he has yet to reach.The rules that determine whether an investor is deemed to have control over a bank may soon change. The Fed has submitted a proposal to clarify the factors and thresholds that determine control.(Adds BofA comment in seventh paragraph, updates share price in fifth)\--With assistance from Lananh Nguyen.To contact the reporter on this story: Katherine Chiglinsky in New York at kchiglinsky@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Buffett's Berkshire seeks Fed leeway to boost BofA bet: Bloomberg
    Reuters

    Buffett's Berkshire seeks Fed leeway to boost BofA bet: Bloomberg

    Shares of BofA were up 3% after the report came out. Berkshire, which has a 9.96% stake in BofA, filed an application with the Fed in recent weeks making a variety of assurances that it will passively invest in the bank, the report said https://bloom.bg/2ISBQEW citing a copy of the application provided by the regulator.

  • Reuters

    Buffett's Berkshire seeks Fed leeway to boost BofA bet - Bbg

    Shares of BofA were up 3% after the report came out. Berkshire, which has a 9.96% stake in BofA, filed an application with the Fed in recent weeks making a variety of assurances that it will passively invest in the bank, the report said https://bloom.bg/2ISBQEW citing a copy of the application provided by the regulator.

  • The Zacks Analyst Blog Highlights: Cisco Systems, SAP, Gilead Sciences, Bank of America and Caterpillar
    Zacks

    The Zacks Analyst Blog Highlights: Cisco Systems, SAP, Gilead Sciences, Bank of America and Caterpillar

    The Zacks Analyst Blog Highlights: Cisco Systems, SAP, Gilead Sciences, Bank of America and Caterpillar

  • JPMorgan (JPM) Q3 Earnings Top on Bond Trading, Underwriting
    Zacks

    JPMorgan (JPM) Q3 Earnings Top on Bond Trading, Underwriting

    Rise in fixed income trading income and underwriting fees support JPMorgan's (JPM) Q3 earnings. Yet, lower interest rates, dismal loan growth and lower advisory fees act as headwinds.

  • Wells Fargo's (WFC) Q3 Earnings Disappoint on Lower NII
    Zacks

    Wells Fargo's (WFC) Q3 Earnings Disappoint on Lower NII

    Wells Fargo's (WFC) Q3 results reflect higher expenses and reduced net interest income, partly offset by elevated fee income.

  • Goldman (GS) Q3 Earnings Miss, Revenues & Costs Disappoint
    Zacks

    Goldman (GS) Q3 Earnings Miss, Revenues & Costs Disappoint

    Goldman Sachs' (GS) Q3 results reflect disappointing investing and lending revenues, underwriting business and higher expenses, partly offset by fixed income trading activities outperformance.

  • Bank of America Rises 3%
    Investing.com

    Bank of America Rises 3%

    Investing.com - Bank of America (NYSE:BAC) rose by 3.33% to trade at $30.11 by 12:27 (16:27 GMT) on Tuesday on the NYSE exchange.

  • 5 Must-See Big Bank Earnings Charts
    Zacks

    5 Must-See Big Bank Earnings Charts

    With the Federal Reserve cutting interest rates, how are the bank stocks holding up?

  • Top Stock Reports for Cisco, SAP & Gilead
    Zacks

    Top Stock Reports for Cisco, SAP & Gilead

    Top Stock Reports for Cisco, SAP & Gilead

  • Zacks

    Dismal Trading, Lower Rates to Hurt BofA's (BAC) Q3 Earnings

    BofA's (BAC) Q3 earnings are expected to reflect disappointing trading activities, lower interest rates, weak lending scenario and muted investment banking performance.

  • Reuters - UK Focus

    US STOCKS-Wall St heads lower as trade deal optimism fades

    Wall Street was set to fall for the first time in four sessions on Monday on signs there was more hard work to be done before a partial trade deal with China announced by President Donald Trump on Friday could be sealed. The S&P 500 and Dow Jones indexes ended Friday with their first weekly gain in a month after the U.S. President announced an accord he said would see both sides ease the tit-for-tat measures that have hammered global growth this year.

  • NewsBreak: Nike Shares Hit All-Time High on Upgrade
    Investing.com

    NewsBreak: Nike Shares Hit All-Time High on Upgrade

    Investing.com - Shares of athleticwear giant Nike rose in midday trading, setting an all-time high thanks to an upgrade from Bank of America Merrill Lynch (NYSE:BAC) that said the company can move past the troubles it’s faced for three years.

  • Trade war pause, retail sales, bank earnings – What to know in the week ahead
    Yahoo Finance

    Trade war pause, retail sales, bank earnings – What to know in the week ahead

    The coming week’s docket of economic reports and earnings releases comes just following the Trump administration’s announcement of a partial trade deal with China late last week.

  • Bank earnings preview: 'Chipping away' at expenses amid a tough environment
    Yahoo Finance

    Bank earnings preview: 'Chipping away' at expenses amid a tough environment

    Earnings season kicks off next week with the big banks reporting first. Analysts say the key for earnings at the large financial institutions will be expense control.

  • What to Expect from Q3 Earnings Season with Big Banks Set to Report?
    Zacks

    What to Expect from Q3 Earnings Season with Big Banks Set to Report?

    What to Expect from Q3 Earnings Season with Big Banks Set to Report?

  • Barclays CEO Jes Staley on his bank's stock: 'It's undervalued'
    Yahoo Finance

    Barclays CEO Jes Staley on his bank's stock: 'It's undervalued'

    On Thursday, Barclays CEO Jes Staley called pressure on the stock “deeply frustrating,” citing three causes for its poor performance: Brexit, low interest rates, and lingering regulatory measures that stemmed from the financial crisis.

  • Fed Brings a Bazooka to Its Fight With the Repo Market
    Bloomberg

    Fed Brings a Bazooka to Its Fight With the Repo Market

    (Bloomberg Opinion) -- Strategists at Bank of America Corp. published a report on Friday that said “the Fed needs a bazooka of asset purchases.” However, they said, that’s unlikely to happen, and the central bank will probably buy only $25 billion to $50 billion a month in Treasury bills, “to guard against the perception of QE.”Well, the Federal Reserve brought the heavy artillery.The bank announced on Friday that it will begin purchasing $60 billion of bills a month, starting Oct. 15, to keep control over short-term interest-rate markets. It will keep doing so “at least into the second quarter of next year,” which gives officials some flexibility to change the pace and length of purchases. On top of that, the Fed will continue to conduct overnight and term repo operations until at least January, presumably to ensure there are no serious flare-ups in short-term interest rates around the end of the year.A few things stand out about this announcement. First is the timing. Presenting the Fed’s plan now, rather than as part of its Oct. 30 interest-rate decision, is a transparent effort to emphasize that the bill purchases are not about easing monetary policy but rather a more mechanical process of adding reserves. Indeed, the central bank noted in its statement that “these actions are purely technical measures” and “purchases of Treasury bills likely will have little if any impact on the level of longer-term interest rates and broader financial conditions.”In other words, it’s not QE. (Which is still true, by the way.)At the same time, the magnitude of the purchases seems destined to complicate the message for Fed Chair Jerome Powell and other policy makers. Yes, the $60 billion a month is probably rooted in some analysis of what needed to, as the statement says, “ensure that the supply of reserves remains ample even during periods of sharp increases in non-reserve liabilities.” But the figure is nonetheless a bit of sticker shock to traders who just three months ago were dealing with a period of balance-sheet reduction.Since the Fed announced it would stop balance-sheet normalization, it has cut interest rates twice, and the bond market is indicating it could do so again later this month. Basically, the end of the runoff ushered in a wave of rate cuts. Now the central bank is actively buying bills. Even though it’s technical in nature, it’s going to be a continuing battle to convince traders that the fed funds rate could hold steady in the next several months if the economic data come in as expected.It’s true, as Bank of America notes, that the Fed has already added about $180 billion in reserves through repo operations. But revealing outright Treasury purchases nevertheless signals that the central bank overestimated how far it could reduce its balance sheet without straining implementation of its monetary policy. Bank of America, in its “bazooka” comment, said the Fed could consider adding firepower by buying short-term Treasury notes as well, but the central bank stopped short of that. For almost two years, the Fed was allowing some of its maturing debt to run off, in what former Chair Janet Yellen once equated to “watching paint dry.” That gradual approach worked when reserves were on their way down. On the way up, we have what Bloomberg Intelligence’s Ira Jersey calls a “big bang.” If there’s one thing made clear by this announcement, it’s that the Fed is ready and willing to pull out all the stops to tame the short-term rate markets after their tantrum last month.To contact the author of this story: Brian Chappatta at bchappatta1@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Pound Having Best Two Days in a Decade on Pivotal Brexit Moment
    Bloomberg

    Pound Having Best Two Days in a Decade on Pivotal Brexit Moment

    (Bloomberg) -- After spending almost the whole year betting Brexit woes would weaken the pound, traders are now on red alert as the potential for a divorce deal sends sterling flying higher.The U.K. currency jumped the most over two days since 2009 after Thursday’s positive meeting between Prime Minister Boris Johnson and Ireland’s Premier Leo Varadkar. That was followed by further supportive comments, before a recommendation that Britain and the European Union enter into line-by-line negotiations on a Brexit accord.Markets are taking these developments to be a game-changer. One-month options have never shown a stronger bias in favor of contracts to buy the pound, based on Bloomberg data going back to 2003. U.K. bank stocks surged along with domestically focused equities and government bonds sank for a third day.The “pivotal moment” of a meeting between the British and Irish leaders was enough to convince strategists at Deutsche Bank AG to terminate a recommendation to sell sterling. Further progress on talks before the end of the month would risk greater pain for traders betting against the currency, and also spell danger for holders of U.K. government bonds and FTSE 100 stocks.“We cannot recall a time during the Brexit process of the last year at which the Irish government raised expectations to this extent,” wrote Oliver Harvey and George Saravelos, strategists at Deutsche Bank, who forecast correctly in 2015 that the pound would drop to its weakest level since 1985 in the following years. “We are no longer negative on the pound.”The pound stormed higher after Varadkar and Johnson said Thursday they could see a pathway to a deal before the Brexit deadline of Oct. 31. While much uncertainty still remains, if Ireland -- one of the most important protagonists in talks -- sees a way forward, that could at the least help avoid a crash exit, the worst-case outcome for the U.K. economy and the pound.European Council President Donald Tusk said Friday he has received “promising signals” that a Brexit deal is possible. A meeting between the European Commission’s chief negotiator Michel Barnier and his British counterpart Stephen Barclay was also described by both sides as being “constructive.” Barnier recommended that detailed talks can begin in earnest.Risk reversals, a barometer of market sentiment and positioning, surged for options that benefit from a stronger sterling. And demand for pound calls, which give the right to buy the currency, outweighs that for puts at a 2:1 ratio since the Johnson-Varadkar meeting, according to data from the Depository Trust & Clearing Corporation.It’s potentially bad news for hedge funds and asset managers, which were structurally short the U.K. currency, holding a net position close to record highs, according to U.S. Commodity Futures Trading Commission data.The pound gained 1.9% to $1.2678 by 3:00 p.m. in London Friday, following a 1.9% jump on Thursday. U.K. government bonds fell, sending 10-year yields 11 basis points higher to 0.70% as a Brexit deal may bode well for the economy and inflation.The currency may rally even more should a lack of bad news between the negotiating parties begin to turn into materially good news, according to Nomura International Plc strategist Jordan Rochester. The bank is recommending investors short the euro versus sterling. The pound jumped 1.4% to 87.20 pence per euro, reaching its strongest level since May.The U.K.’s FTSE 100 index rose 0.5%, but underperformed a rally of nearly 2% for the STOXX Europe 600 Index as a stronger pound may dent earnings from abroad. Both Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc climbed more than 12%, rallying with homebuilders, domestically focused stocks on the FTSE 250 index, and Irish equities.Shorts WhackedInvestors remain more cautious on sterling’s longer-term prospects. A September fund manager survey from Bank of America showed the U.K. has been the least favored region by investors in terms of equity allocation globally. Thirty percent of fund managers said they were underweight U.K. stocks.While demand for options that look for a weaker pound has waned, the market is still biased in favor of downside protection. That may partly reflect the dollar’s allure amid global growth concerns and trade jitters. A further improvement in market sentiment could come from trade talks between the U.S. and China, and that in turn may see bets on a stronger pound gain additional traction.“Momentum feeds momentum in sterling,” said Lars Merklin, a strategist at Danske Bank A/S. “Without more details it is impossible to say this time is the big one where a deal gets done.”(Updates with Bank of America survey, Danske comment.)\--With assistance from Blaise Robinson.To contact the reporters on this story: Vassilis Karamanis in Athens at vkaramanis1@bloomberg.net;John Ainger in London at jainger@bloomberg.netTo contact the editors responsible for this story: Paul Dobson at pdobson2@bloomberg.net, Neil ChatterjeeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • How Bank of America Became Buffett’s Berkshire Jewel
    Market Realist

    How Bank of America Became Buffett’s Berkshire Jewel

    In 2011, Warren Buffett invested $5 billion in Bank of America (BAC). BAC is now Berkshire Hathaway's second-largest holding and is worth about $27 billion.

  • Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know
    Zacks

    Bank of America (BAC) Outpaces Stock Market Gains: What You Should Know

    In the latest trading session, Bank of America (BAC) closed at $27.89, marking a +0.94% move from the previous day.

  • Gold ETFs Post Longest Run in a Decade as Investors Take Cover
    Bloomberg

    Gold ETFs Post Longest Run in a Decade as Investors Take Cover

    (Bloomberg) -- As global tensions escalate and signs of a slowdown mount, more investors are turning to gold. Worldwide holdings in bullion-backed exchange-traded funds have expanded for 17 days in a row, the longest run of inflows since 2009.The total stash now stands less than 35 tons away from a record set in 2012, according to the latest tally by Bloomberg. The consistent influx has come even as prices struggled to extend gains above $1,500 an ounce in recent weeks.Bullion has climbed 18% in 2019 as the U.S.-China trade war hurts global growth and central banks loosen policy. The rise in ETF holdings comes as investors fret that high-level talks between Washington and Beijing set for later this week are unlikely to yield a breakthrough. In addition, Federal Reserve Chairman Jerome Powell hinted on Tuesday at the possibility of another interest-rate cut.“Gold inflows are likely to persist,” Citigroup Inc. said in a note, sticking with its forecast for a rally to $1,700 an ounce over six to 12 months. “Markedly weak manufacturing and services ISM data show that the slowdown in global trade is starting to bite the U.S. economy.”Gold futures, a traditional haven and beneficiary when investors shun risk, advanced on Wednesday ahead of the trade talks and as markets awaited minutes from the Fed’s September meeting. Prices pared gains before bouncing off the day’s lows as investors weighed whether news that China is said to be open to agreeing to a partial trade deal would be enough to damp the precious metal’s haven appeal.Read more: China Open to Partial U.S. Trade Deal Despite Tech Blacklist“Over the last few days, it’s been fairly noisy as far as trade headlines,” Ryan McKay, a strategist at TD Securities in Toronto, said by phone. “I don’t think the gold market’s ready to jump on one headline more than another, so at this point it’s fairly choppy on either side of $1,500 here until we get something more concrete from the meeting here at the end of this week.”The series of warnings this week about risks encompasses the trade standoff and other long-running frictions. Societe Generale SA Chairman Lorenzo Bini Smaghi said a hard Brexit could plunge the world into recession and would be a disaster for the financial system. Kristalina Georgieva -- in her first major address as head of the International Monetary Fund -- warned the global economy is now looking at a “synchronized slowdown.”“Gold obviously stands to benefit” if China and the U.S. can’t reach a mini deal this week, Adarsh Sinha, co-head of Asia FX and rates strategy at Bank of America Merrill Lynch, told Bloomberg TV Wednesday.Gold futures for December delivery rose 0.6% to settle at $1,512.80 an ounce at 1:30 p.m. on the Comex in New York. Silver also gained, while on the New York Mercantile Exchange, platinum and palladium advanced. The Bloomberg Dollar Spot Index was little changed.\--With assistance from Elena Mazneva and Justina Vasquez.To contact the reporter on this story: Ranjeetha Pakiam in Singapore at rpakiam@bloomberg.netTo contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Jake Lloyd-Smith, Joe RichterFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Stock Market News For Oct 9, 2019
    Zacks

    Stock Market News For Oct 9, 2019

    Benchmarks closed in the negative territory on Tuesday as U.S. blacklisted 28 Chinese companies and imposed visa restrictions on Chinese officials, dampening hopes on trade negotiations.

  • Reuters

    UPDATE 1-Exxon names BAML to run Malaysia asset sales -sources

    Exxon Mobil Corp has appointed Bank of America Merrill Lynch to run the sale of its Malaysian oil and gas assets as the U.S. firm accelerates a vast disposal program, banking and industry sources said. The Malaysian assets, which include stakes in two large fields, are expected to fetch up to $3 billion, the sources said.

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