BAC Sep 2020 29.000 call

OPR - OPR Delayed price. Currency in USD
0.3800
0.0000 (0.00%)
As of 3:59PM EDT. Market open.
Stock chart is not supported by your current browser
Previous close0.3800
Open0.5100
Bid0.0000
Ask0.0000
Strike29.00
Expiry date2020-09-18
Day's range0.3300 - 0.5100
Contract rangeN/A
Volume561
Open interest7.82k
  • Indonesia Slashes Growth Forecast by More Than Half on Virus
    Bloomberg

    Indonesia Slashes Growth Forecast by More Than Half on Virus

    (Bloomberg) -- Indonesia slashed its growth forecast by more than half as the coronavirus pandemic takes a toll on Southeast Asia’s biggest economy, prompting the government to adopt a series of emergency measures.The economy is now projected to grow 2.3% this year, compared to an initial estimate of 5.3%, Finance Minister Sri Mulyani Indrawati said in Jakarta Wednesday. Under a worst-case scenario, the economy could contract 0.4%, she said.Indonesia is scrapping fiscal limits as it ramps up its response to the virus outbreak. President Joko Widodo on Tuesday took a number of emergency measures, including cutting corporate taxes, temporarily removing the budget-deficit cap and allocating 405 trillion rupiah ($24.8 billion) to fight the pandemic.The new growth forecast is part of sweeping revisions to previous budget estimates announced by the finance minister Wednesday:Fiscal deficit to widen to at least 5.07% of GDP in 2020 from original target of 1.76%Debt-to-GDP ratio to remain at about 60%Revenue to decline by 10%Annual inflation projected in range of 3.9%-5.1% compared to a previous estimate of 3.1%The rupiah, already down almost 13% in the past month, may tumble to as low as 17,500 per U.S. dollar. Under the worst-case scenario, the currency may plunge to 20,000Indonesia Scraps Deficit Ceiling as It Ramps Up Virus ResponseIndrawati said the spread of the novel coronavirus had created a humanitarian and financial crisis that has lead to high volatility and global panic. “We must improve our response,” she said, adding that authorities think the outbreak in Indonesia may peak as early as this month.Like many other countries, Indonesia is confronting a crisis on two fronts, with a spike in Covid-19 virus cases stretching the health system to near-breaking point and the economy rapidly deteriorating.The budget deficit cap of 3% of GDP, introduced in 2003 in the wake of the Asian financial crisis, will be removed immediately, allowing the government to significantly ramp up its stimulus. The government will revert to the 3% cap in 2023.“Getting the outbreak under control should be the first priority, as successful containment is key for any economic recovery,” said Mohamed Faiz Nagutha, an economist with Bank of America Securities in Singapore. “More support is likely still needed given the downside risks to growth, but the government now at least has the option of doing more.” Job LossesThere are worries of widespread job losses in a nation where about 70 million of its 270 million population work in informal employment. Tuesday’s steps follow two previous stimulus packages announced since late February.A decree signed by the president Tuesday also paved the way for the central bank to participate in the auction of sovereign bonds to help the government meet its larger budget financing needs. Bank Indonesia may directly buy the notes to ensure there’s no abnormal spike in yields and only if the market fails to absorb additional supply, Governor Perry Warjiyo said Wednesday. The central bank may be asked to buy the securities as a last option, Indrawati said.The yield on 10-year rupiah sovereign bonds rose 3 basis points on Wednesday to 7.93%, after rallying 96 basis points in March, the biggest monthly gain since 2013. (Updates with comment from economist in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • BofA's Solid Liquidity to Help Tide Over Coronavirus Crisis
    Zacks

    BofA's Solid Liquidity to Help Tide Over Coronavirus Crisis

    Strong balance sheet position and fundamental strength will likely support BofA (BAC) amid coronavirus crisis.

  • Business Wire

    Bank of America U.S. Minimum Hourly Wage Reaches $20

    One year ago, Bank of America announced it would raise its U.S. minimum hourly wage to $20 over a two-year period. The first increment to $17 was made in May 2019; six months later, the company announced it would accelerate the move to $20 by a year; and in March this year, Bank of America made this change.

  • Bank of America Stock Falls 3%
    Investing.com

    Bank of America Stock Falls 3%

    Investing.com - Bank of America (NYSE:BAC) Stock fell by 3.18% to trade at $21.33 by 15:04 (19:04 GMT) on Tuesday on the NYSE exchange.

  • Distressed-Debt Vultures Might Already Be Too Late
    Bloomberg

    Distressed-Debt Vultures Might Already Be Too Late

    (Bloomberg Opinion) -- “Investing in distressed debt is a struggle today. … The economy is too good, the capital markets are too generous. It’s hard for a company to get into trouble.”Howard Marks, the co-founder of Oaktree Capital Group and a legendary distressed-debt buyer, said this in mid-September. He was very much speaking to the widespread frustration among his peers in the industry at the time. The Federal Reserve had swooped in and starting cutting interest rates to offset any damage from the U.S.-China trade war. Stocks shrugged off a brief decline in August. The yield pickup on speculative-grade corporate bonds had again retreated toward post-2008 lows. Indeed, distress was virtually nowhere to be found.It’s remarkable to consider just how much has changed. Junk-bond spreads have more than tripled since Marks’s interview, hitting as high as 1,100 basis points last week compared with about 350 basis points in September. The amount of debt trading at a distressed level reached almost $1 trillion. Suddenly, the economy is not “too good” but rather headed into a short recession at best and a depression at worst. Capital markets have been frozen for weeks for all but the highest-quality companies. Credit-rating firms are contemplating default scenarios more severe than the last downturn.Given this shift, it comes as little surprise that hedge funds are making headlines daily with plans to capitalize on this rapid shift in the outlook, contending the market presents a once-in-a-lifetime opportunity. Just to name a few in the past week (credit to Bloomberg’s Katherine Doherty for the reporting):Highbridge Capital Management is preparing to launch two credit-dislocation funds totaling $2.5 billion, expecting to complete fundraising in mid-April. Knighthead Capital Management wants up to $450 million in additional cash for its distressed-debt fund. Silverback Asset Management is preparing to start a $200 million credit fund, aiming to wrap up fundraising sometime in April.Make no mistake, it’s still relatively early days in the coronavirus outbreak, particularly in the U.S. The lasting damage to the world’s largest economy remains very much a guessing game at this point. And yet, despite all of that, it’s starting to feel as if even waiting a few weeks to round up cash might cause some opportunistic funds to miss out on the biggest bargains.For one, the ICE Bank of America Merrill Lynch distressed-debt index gained for four consecutive days through the end of last week, the longest rally since the start of the year. It’s still down more than 40% in just three months, so the market is hardly back to the halcyon days of the recent past, but the semblance of a floor provides at least some optimism that the precipitous drops are winding down. High-yield spreads broadly have tightened to 921 basis points from the aforementioned 1,100.The steep March sell-off has been enough to excite some large traditional fixed-income managers. Ashish Shah, co-chief investment officer of fixed income at Goldman Sachs Asset Management, told Bloomberg’s Gowri Gurumurthy that speculative-grade bonds will gain 20% in 2020 and potentially 30% in the next 18 months. Scott Roberts at Invesco Ltd. declared the chance to scoop up cheap debt will be “gone way before the fear subsides.”Meanwhile, distressed-debt funds have been sitting on cash for years waiting for a moment like this. Preqin collects data on this so-called dry powder, and when I checked in on Monday, the firm estimated that the funds had $63.6 billion to invest as of this month. That might not be enough to buy all debt now trading at a distressed level — but it’s certainly enough to pick through the wreckage for companies with the best chance of survival.Centerbridge Partners LP, for instance, last week activated $3 billion of capital it raised way back in 2016, while Sixth Street Partners plans to activate a $3.1 billion contingency fund raised mostly in 2018, Bloomberg’s Gillian Tan reported. Centerbridge’s cash reserve is tied to two funds focused on opportunistic investments in senior loans and high-yield bonds. Sixth Street will have more than $10 billion of dry powder to invest once the TAO Contingent Fund is activated on Wednesday.Then there’s Marathon Asset Management, which managed to draw $500 million into its opportunistic and distressed credit funds in just a week, Bloomberg’s Eliza Ronalds-Hannon reported on Monday. Bruce Richards, co-founder and chief investment officer of the firm, called this the “greatest dislocation in credit we’ve seen since 2008” and said last week that he was first looking for bonds with coupons between 5% to 7% that were trading at full value earlier this year but have since fallen to about 70 cents. That might sound picky, but with money to invest right now, Richards can afford to be selective.“Historically speaking, when you get to these spread levels, it’s never been a bad place to enter and in a two-year window of time it’s a good buying opportunity,” Jim Schaeffer, global head of leveraged finance at Aegon Asset Management, which manages $390 billion of assets, told me in an interview. And firms that can call capital on funds have “got to start calling them now — if not now, when? What are you waiting for?”It still feels like a tough market for risky credit, but the tide may be turning. Notably, Yum! Brands Inc. brought the first U.S. high-yield offering since March 4 and the deal was upsized to $600 million from $500 million after receiving $3 billion of orders. Yum is far from a distressed company, of course, with double-B credit ratings from Moody’s Investors Service and S&P Global Ratings. But last week, bonds in that rating tier yielded on average 865 basis points more than U.S. Treasuries, compared with 162 basis points in December. That’s not quite distressed, but it’s certainly dislocated.By no means does one deal indicate that credit has bounced back from rock-bottom. But it’s another box checked on the road to recovery, along with tightening spreads in the secondary market and big-name investors getting more vocal about wading back into risky assets (which could be a tell that they’ve already placed their bets).If we’ve learned one thing about financial markets in the age of coronavirus, it’s that they can move at breakneck speed and that those with cash on hand at a moment’s notice are in the driver’s seat. Investors looking to seize on the distressed-debt opportunities of today may want to turbocharge their fundraising efforts accordingly.This column does not necessarily reflect the opinion of 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Business Wire

    Bank of America Commits $250 Million in Capital and $10 Million in Philanthropic Grants to Community Development Financial Institutions (CDFIs)

    As the federal government continues to finalize the details and protocols of implementing the recently passed Coronavirus Aid Relief and Economic Security (CARES) Act, Bank of America today announced that it will provide up to $250 million in capital to community development financial institutions (CDFIs) by funding loans through the newly established Paycheck Protection Program. In addition, Bank of America will provide up to $10 million in philanthropic grants to help fund the operations of CDFIs.

  • Bloomberg

    Banker Job Cuts Will Be Back, Sooner or Later

    (Bloomberg Opinion) -- The rat-a-tat of banks in the U.S. and Europe pledging not to cut jobs in the midst of the coronavirus pandemic will be a relief to those inside and outside the industry as the world economy crumbles. For many bankers, though, the respite will be no more than temporary.As governments race to prop up companies and individuals with financial aid, lenders are critical to the transmission of these policies. It will be up to them to delay mortgage and loan payments and hand out state-backed loans to millions of customers. That will determine the extent to which economies can mitigate the slump as businesses battle to survive through the lockdowns. Bank of America Corp. — at one point the target of social media ire over its customer payment terms —  has moved thousands of employees to its consumer and small business units to deal with the crisis, including bringing in temporary external hires.Unlike the crisis of 2008, the stresses on markets and the economy are not of banks’ making but they could be as severe. Policymakers have rushed through stimulus and eased lenders’ capital requirements to soften the blow. As they grapple with the operational challenge of fielding a volume of customer calls running as high as 10 times normal levels, now is not the time for layoffs. As regulators have said, buybacks and dividends must go first.Yet the pressure on bank jobs and other costs won’t go away in the medium term. Even the better-placed lenders, which have prospered from the recent spike in market trading activity, will be affected by the economic carnage of the next few months. Deutsche Bank AG, which has paused staff cuts in the middle of its biggest restructuring in decades, on March 18 said the positive business momentum in the fourth quarter of 2019 — in which trading was prominent — carried over into start of 2020. Two days later, it warned it “may be materially adversely affected by a protracted downturn.”From their markets businesses to lending and commissions from investment products, analysts expect all banks to suffer a drop in revenue and an inevitable build-up of bad loans that will erode profit. Record low interest rates will keep squeezing loan margins and appetite for new investments will almost certainly remain subdued for some time.Some analysts are starting to try to asses the financial hit. A Berenberg study of 38 European and U.S. banks estimates an overall revenue decline of 8.5% in 2020 and earnings 30% below what was expected for 2020. There’s only so much policymakers can do to shield financial firms.Europe’s banks, which were struggling to generate sustainable profit even before the latest crisis, will feel most acutely the pressure to shore up capital. This will create the conditions for more mergers.The cost-to-income ratio at the region’s top banks averaged 66.9% in 2019, the highest level since the financial crisis. Return on equity, a measure of profitability, dropped to 8.7%, the lowest in three years, Bloomberg Intelligence data show. Moody’s has downgraded the credit outlook for banks across France, Italy, Spain, Denmark, the Netherlands and Belgium to negative because the operating environment will “deteriorate significantly.” The ratings company already had negative outlooks for British and German banks.As well as the relentless squeeze on profit and costs, there’s another key factor that doesn’t bode well for bank jobs once the current environment ends: the sudden shift to digital banking during the pandemic. Banks are operating with only a fraction of their branches open, leading to a surge in online traffic that might well stick after the Covid-19 outbreak abates. One big U.K. bank saw demand for its online app more than triple to 5,000 daily downloads last week. In the U.S., Italy, France and Germany bank branches on average provide services to fewer than 3,500 inhabitants. In the Netherlands, where the banks are further along in introducing technological changes, the figure is closer to 11,000. This may well be a turning point in the desirability of local brick and mortar banks.The acceleration toward digital banking after the coronavirus “will probably be very fast,” UniCredit SpA Chief Executive Officer Jean Pierre Mustier told Bloomberg Television on Monday. Smaller banks in particular will have to adapt quickly. As economies implode under lockdowns affecting more than one-third of the world’s population, banks are in demand like never before. That won’t last.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Dollar Heads for Worst Week Since 2009
    Bloomberg

    Dollar Heads for Worst Week Since 2009

    (Bloomberg) -- Two weeks after investors dumped everything they could to hoard U.S. dollars, some are now starting to sell.Intercontinental Exchange Inc.’s U.S. Dollar Index sank 4.4% this week, the biggest weekly drop since 1985. Traders point to a confluence of reasons, ranging from less stress in funding markets, the repatriation of funds as the quarter ends and the worsening coronavirus outbreak in the U.S.“The sell-off in the U.S. dollar is a reaction to the liquidity measures announced by the Federal Reserve and other central banks,” said Jane Foley, a currency strategist at Rabobank. “Fear may have subsided for now.”A separate gauge of the greenback, the Bloomberg Dollar Spot Index, fell 4.1% on the week, the largest weekly loss since its inception in 2005. It had surged 8.3% over the previous two weeks. The greenback slumped against most of 16 major peers this week, weakening more than 7% against the Norwegian krone and the British pound.The decline comes after the Federal Reserve expanded currency swap lines with central banks, ramped up cash offered to the repurchase-agreement markets and introduced a series of tools to unfreeze credit markets. Stress in cross-currency basis markets, a key funding channel, has eased.Funding Markets See Glimmer of Light With Dollar Stress EasingThe three-month dollar-yen basis is now back to levels seen in early March, while the euro equivalent has swung into positive territory. In foreign-exchange swap markets, the costs to borrow dollars is back to about 1.86% after it printed at more than 2.5% last week.“It’s 100% a dollar-funding story -- the mean reversion of the dollar liquidity crunch is prompting all other FX to rally against the dollar,” said Margaret Yang, a strategist at CMC Markets Singapore Pte.Asia GainsThe dollar weakened as much as 1.7% against the yen Friday amid broad greenback losses and in part by repatriation flows ahead of the nation’s fiscal year-end on March 31, according to Takuya Kanda, general manager at Gaitame.com Research Institute in Tokyo.Other currencies in Asia bounced off multi-year lows. The Australian dollar had dropped to the weakest since 2002 last week and has rebounded.Traders also pointed to the rising virus count in the U.S. and a jump in jobless claims to 3.28 million last week as sapping the greenback. Forecasters expect data next week to show the U.S. unemployment rate climbed.To be sure, the dollar weakness may be temporary.As the new quarter starts Wednesday, repatriation funds will slow and the haven bid from a worsening global pandemic may fuel a resurgence in demand.And while risk appetite returned to markets this week to spur a rebound in equities, Nomura’s Jordan Rochester says that sentiment may ebb next week and the dollar is likely to “regain some ground.”In equities, “it’s natural to see a rebound, but bear markets are marathons not sprints, so it’s not clear to us that the positive momentum can be sustained, especially with the potential for more lay-offs, credit downgrades and potential for defaults.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bank of America’s Race to Avoid Public Shaming Underscores the Perils of the Crisis
    Bloomberg

    Bank of America’s Race to Avoid Public Shaming Underscores the Perils of the Crisis

    (Bloomberg) -- For 93 uncomfortable minutes, Bank of America Corp. rushed to escape infamy this week, before it was saved by the grace of James Corden, the affable talk show host known for crooning in cars with stars.The drama began when California Governor Gavin Newsom called out the bank for not offering 90-day grace periods to mortgage borrowers affected by the coronavirus, despite such pledges by rivals including JPMorgan Chase & Co. and Wells Fargo & Co. A journalist tweeted the lashing, and then Corden reposted it to his 10.7 million followers. The bank raced to correct what it called the governor’s mistake.Just over an hour later, the firm promised Corden it would defer payments on home loans for as long as the crisis requires. He relented, putting the internet’s fury to rest:Across the nation, bankers are on edge. Publicly, they’re emphasizing that unlike the last downturn in 2008 they aren’t the cause of this collapse and they intend to help America get through it. Privately, they worry they’re destined to get cast as villains.Once the government enacts its $2 trillion rescue package, banks are going to be the last resort for millions of consumers and businesses needing additional support to weather months of hardship. The nation’s eight banking titans have enough excess capital to ramp up lending by $1.6 trillion, but even that probably isn’t enough to meet everyone’s needs.That means bankers will often decide which borrowers get relief from existing loans or access to more credit -- make-or-break moments for people and businesses trying to avoid default and insolvency.One of the industry’s most senior leaders put it this way: The country’s banks are strong and ready to support the economy -- but they can’t afford to lend irresponsibly to clients who can’t repay. That limits the ability of banks to lend to others.“The best credits are made in the worst of times,” said Julie Solar, a senior analyst who tracks North American financial institutions at Fitch Ratings. As the virus’s toll on the economy worsens, lenders will eventually be forced to pick winners and losers, she said. “Those borrowers who are higher investment grade are going to fare better.”‘Fine Line’There are also ethical questions: Banks must walk a “fine line” to prevent desperate clients from overburdening themselves with debts they can’t repay, Citigroup Inc. Chief Executive Officer Michael Corbat told the Financial Times this week. That’s “the last thing that we all want to see.”Bank of America’s quick move to head off a Twitter backlash shows how worried banks are about keeping public criticism at bay. The lender followed up with a statement saying Newsom was mistaken and that it plans to defer payments on a monthly basis until the end of the crisis.Banks have many other lending decisions ahead. It’s not hard to imagine people and employers facing rejection will feel they could’ve made it through if their bankers just gave them a chance. Such accusations have deep roots in American history, notably the Great Depression.Desperation is rapidly mounting.Companies hit first by the sudden halt to global travel -- such as airlines, hotels, cruise-ship operators, casinos and oil producers -- have been drawing down billions of dollars from existing credit lines for weeks. Their pain soon spread to restaurants, retailers and legions of small businesses as a growing number mayors and governors told residents to stay home.On Thursday, the U.S. reported an unprecedented surge in the number of people seeking jobless benefits, with 3.28 million filing claims in just one week.Behind the scenes, senior bankers said they are rapidly reevaluating their loan portfolios to gauge how the virus and social distancing measures are likely to affect corporate customers, trying to figure out which are most or least resilient.Banks have been honoring credit lines they offered corporate clients in the halcyon years before the pandemic. One looming question is whether lenders might invoke the so-called MAC, or “materially adverse change” clauses, to stop drawdowns. One concern is that some businesses with little to no chance of making it through will siphon off billions in loans that could go toward supporting others.Citing those clauses risks sending shock waves across the industry, potentially prompting stronger companies to draw down their lines preemptively. Still, one high-level banker said he’s expecting to see a few denials this year.Banks are trying to maintain goodwill in Washington, working in close coordination with regulators on measures to shore up the financial system. Earlier this month, a delegation of CEOs from firms including Goldman Sachs Group Inc., Wells Fargo, Citigroup and Bank of America visited the White House to offer reassurances that they can weather the turmoil and help others.In the days since, national and regional lenders have rolled out a series of good deeds. They pledged more than $200 million to charities and relief efforts. Some offered branch workers extra pay. Several suspended long-planned layoffs to give workers certainty.While the stimulus bill passed by the Senate this week includes clauses offering some borrowers forbearance, consumer advocates have been urging banks to go further on their own.Lawmakers are ratcheting up pressure on lenders to help constituents in other ways. Last week, Senators Elizabeth Warren and Ed Markey pushed banks and credit unions in their home state of Massachusetts to suspend a variety of fees -- such as charges for late payments, overdrafts and using ATMS -- that generate billions of dollars in annual revenue nationally.To conserve funds for lending, the country’s largest banks vowed to stop buying back their own shares through at least the middle of the year. The move comes at a cost for investors, some of whom would have preferred firms snap up shares at depressed prices, blunting this year’s 40% plunge in the KBW Bank Index.“The biggest difference between now and 2008 is that the banks are a source of strength rather than the source of the problem,” said Tom Naratil, co-head of UBS Group AG’s wealth management unit. “This is the time for banks, obviously prudently, to make sure that we are extending credit to our clients.”(Updates with additional reference to bank’s response and extent of rout in bank stocks from second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bank of America Pledges to Retain and Pay Staff Throughout 2020
    Bloomberg

    Bank of America Pledges to Retain and Pay Staff Throughout 2020

    (Bloomberg) -- Bank of America Corp. said it won’t cut any jobs this year as a result of the coronavirus, and is helping clients affected by the pandemic through increased commercial lending to companies and expanded forbearance for Main Street customers.The Charlotte, North Carolina-based lender has hired 2,000 people this month and is shifting more than 3,000 employees to new roles in its consumer and small business divisions to deal with the crisis, according to a company memo seen by Bloomberg. The moves include internal and external hires.“We don’t want our teammates to worry about their jobs during a time like this,” Chief Executive Officer Brian Moynihan said in a CNBC interview Friday. “And we’ll continue to pay everybody, even those who can’t work from home.”Bank of America joins U.S. lenders Citigroup Inc., Wells Fargo & Co. and Morgan Stanley, along with European counterparts including HSBC Holdings Plc, in pledging to preserve jobs amid the widespread impact of the coronavirus. The banks are seeking to reassure their employees as the pandemic roils markets and raises the prospect of deep losses industrywide.Bank of America has extended more than $50 billion in loans to commercial clients this month so they can build up cash and pay employees, according to Moynihan.“We’ve put our capital to work to increase the new lines of credit, the draws in lines of credit, the access to markets,” he said.Other takeaways from the interview:“We’re going to make sure we maintain strong capital ratios and strong liquidity right through this crisis,” Moynihan said.The nation’s top 40 banks are all waiting for the implementation of government assistance programs.Bank of America has “a limited number of cases” of the virus among staff members.About 150,000 of the company’s 208,000 employees are working from home, and it boosted the number of staffers who have computer monitors at home to 50,000 from 10,000 in five weeks.(Updates with commercial lending from first paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bank of America capital levels allow operational focus during crisis: CEO
    Reuters

    Bank of America capital levels allow operational focus during crisis: CEO

    "What's different this time is clearly our capital liquidity," Moynihan said in a CNBC interview. "Everything that changed has led the banking industry be in a great condition to service clients continuously for the last few weeks as this thing has hit." The bank has also been hiring and reallocating employees to the consumer bank to help manage a surge in requests related to the pandemic, according to a memo seen by Reuters.

  • Bank of America Stock Falls 5%
    Investing.com

    Bank of America Stock Falls 5%

    Investing.com - Bank of America (NYSE:BAC) Stock fell by 4.89% to trade at $21.60 by 09:31 (13:31 GMT) on Friday on the NYSE exchange.

  • Coronavirus crisis: How to deal with potentially contaminated money
    Yahoo Finance

    Coronavirus crisis: How to deal with potentially contaminated money

    Can you wash money that you think has been contaminated with coronavirus? Should you? How can you deposit or withdraw money right now?

  • Pandemic Risks Inflicting Longer-Term Damage on U.K. Economy
    Bloomberg

    Pandemic Risks Inflicting Longer-Term Damage on U.K. Economy

    (Bloomberg) -- The Bank of England said the economic fallout from the coronavirus pandemic risks becoming entrenched, with some companies already describing the current shock as being worse than the 2008 financial crisis.“There is a risk of longer-term damage to the economy, especially if there are business failures on a large scale or significant increases in unemployment,” BOE officials said, according to the minutes of their latest policy meeting published Thursday. “The economic consequences of these developments are becoming more apparent and a very sharp reduction in activity is likely.”The warning suggests that a recovery would swiftly follow a recession in the first half of the year -- the base scenario of many economists -- may not be a forgone conclusion. The outbreak has already shuttered large parts of the economy, with the government heavily restricting non-essential movement for the next three weeks in an attempt to check the spread of the virus.BOE officials said that while the measures they have taken so far helped stabilize markets and improve liquidity, they stand ready to provide further stimulus if needed. They voted unanimously to keep interest rates and their bond-buying program unchanged, after loosening policy considerably in coordinated action with the Treasury.The benchmark interest rate was left at a record-low 0.1%, after policy makers cut it from 0.75% at two emergency meetings this month. At the second meeting, on March 19, officials also said they will buy 200 billion pounds ($239 billion) of bonds. There wasn’t a strong case for further changes in policy at this week’s meeting, the BOE said.The BOE took swift action in response to the crisis in coordination with the Treasury, which has unveiled a massive fiscal stimulus in an attempt to prevent the recession from causing mass unemployment.What Bloomberg Economists Say...“The Bank of England kept its powder dry at today’s meeting after unleashing a huge amount of emergency stimulus this month. The decision and narrative running though the minutes are consistent with the view that the shock from the pandemic will be large, but temporary.”\-- Dan Hanson, senior U.K. economist. Read full REACT.“Very early reports from several companies suggested that the scheme would save jobs that might otherwise have been lost,” the BOE said.Still, nearly 500,000 Britons have applied for state support payments in the last nine days. If all of those claimants are jobless, the unemployment rate could already have risen to 5.3% from the current level of about 4%, according to Bank of America Merrill Lynch research.That would already be around half the unemployment increase during the global financial crisis, BofA economists wrote.(Updates with universal credit data in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Cost Control, Digital Offerings Aid BofA (BAC) Amid Low Rates
    Zacks

    Cost Control, Digital Offerings Aid BofA (BAC) Amid Low Rates

    Decent loan demand along with improved digital offerings is expected to aid Bank of America's (BAC) profitability amid the current economic slowdown.

  • Big U.S. banks offer forbearance on mortgages - California Governor
    Reuters

    Big U.S. banks offer forbearance on mortgages - California Governor

    Four of the nation's five largest banks have agreed to postpone foreclosures and offer forbearance on mortgage payments for three months for homeowners impacted by COVID-19, California Governor Gavin Newsom said on Wednesday. Bank of America spokeswoman Jessica Oppenheim said the governor was mistaken, however. U.S. bank regulators have directed financial institutions to exercise forbearance and work with their customers who may face hardship, but there are no consistent guidelines on what such forbearance should entail.

  • Bank of America (BAC) Gains But Lags Market: What You Should Know
    Zacks

    Bank of America (BAC) Gains But Lags Market: What You Should Know

    Bank of America (BAC) closed the most recent trading day at $21.10, moving +0.33% from the previous trading session.

  • Bank of America Stock Rises 3%
    Investing.com

    Bank of America Stock Rises 3%

    Investing.com - Bank of America (NYSE:BAC) Stock rose by 3.23% to trade at $21.70 by 09:33 (13:33 GMT) on Wednesday on the NYSE exchange.

  • Economist: ‘We’re gonna have a shutdown in the housing market’
    Yahoo Finance

    Economist: ‘We’re gonna have a shutdown in the housing market’

    The novel coronavirus outbreak will likely bring the U.S. housing market to a halt, according to one economist.

  • Why Bank of America (BAC) is a Top Dividend Stock for Your Portfolio
    Zacks

    Why Bank of America (BAC) is a Top Dividend Stock for Your Portfolio

    Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Bank of America (BAC) have what it takes? Let's find out.

  • U.S. Can Get Bailouts Right This Time
    Bloomberg

    U.S. Can Get Bailouts Right This Time

    (Bloomberg Opinion) -- A little more than a decade ago, the U.S. was in the midst of wrenching a financial crisis. Many things contributed to the debacle. Government officials took charge, using whatever tools they had at hand, and managed to wrestle the worst of the 2008-09 financial crisis into submission, a saga I described in my book “Bailout Nation.”The prescription was a mix of monetary and fiscal responses, though monetary stimulus did most of the heavy lifting. The worst economic effects eventually subsided and the economy more or less recovered. But the remedies brought with them a heavy dose of unintended consequences: The reliance on monetary policy disproportionately benefited those with capital, leading to big gains in equities and a recovery in residential real estate. Other effects included greater wealth inequality, not to mention the rise of new conspiracy theorists and political opportunists. Around the globe, there was a surge in populism, anti-globalizaton and a disdain for science and expertise.Today, we have a new crisis, one with roots in the last rescue plan. In fashioning our response to the 2020 Covid-19 pandemic, we should be careful to avoid the mistakes made in haste then. Consider three broad categories of the last crisis’ errors: 1) inadequate fiscal stimulus; 2) lack of support for the social safety net; and 3) overly generous bailouts terms for banks and other companies. All were unpardonable, but for now let's focus on the third error.We eventually learned just how much the banks and brokers had leveraged themselves and how little capital they had. Managers across the board had failed to consider the possibility that the good times would end one day. New post-crisis rules were put into place, ensuring banks took less speculative risk and had greater capital reserves. Most of the government bailout money was repaid, though it was not a rewarding investment. And then there were those unintended consequences.Today, the banks are in better shape, but wide swaths of the rest the economy are in deep trouble: Social-distancing rules mean entire industries have ground to a standstill. No one is buying new houses, building cars or shopping for durable goods. Retail, travel, restaurants, entertainment, tourism are all confronting a business collapse unlike anything experienced since at least World War II.That’s the bad news. The worse news is that most of these companies have lots of debt, disappearing revenues and no rainy-day funds. They are all starting to come to Uncle Sam looking for a bailout. Just to cite one example, the White House is considering a $50 billion bailout for the airlines, an industry that clearly failed to plan for hard times.When considering rescuing these companies, we have a variety of past bailouts to select as a template. The bailouts of Citigroup, Wells Fargo, Bank of America were at one end of the spectrum, while the rescue plans for automakers General Motors and Chrysler are at the other end. The American International Group bailout was a more complex, while mortgage giants Fannie Mae and Freddie Mac, which were creatures of government anyway, were essentially nationalized.Of all the bailout plans of that vintage, the one that made the most sense was the GM rescue. Rather than allow GM to collapse -- which surely would have had disastrous consequences -- the government instead helped manage a so-called prepackaged bankruptcy.This turned out to be smart. There was little in the way of panic. There were no mass job losses. The plan adhered to the basic rules of capitalism: when your company is insolvent, it either reorganizes its debts or liquidates. Shareholders were wiped out, bond holders got a haircut, some management was fired and the company was reduced to a sustainable size. GM eventually recovered and went public. The government recouped some of the money it injected into the company when it sold the stake it had taken to facilitate the program.(1)The airlines were not as reckless as the banks, but they certainly were irresponsible with their capital. As Bloomberg News reported Monday, U.S. airlines spent 96% of their free cash flow, or about $12.5 billion, on buybacks. These companies should have planned better and acted more responsibly; instead, they thought the best use of their cash was to reduce their share count and boost their stock prices.If ever there was a case of moral hazard, this is it: Profitable companies that failed to save money for a downturn now want help from the government. If they get a bailout today, what's to stop them from being even more reckless in the future, knowing the feds will ride to their rescue?If we're going to bail out the airlines, that $50 billion should be in the form of a loan secured by the companies' physical assets. Then that $12.5 billion of stock they bought back during the past decade gets sold to the government at a 30% discount to the repurchase price or to the current share price, whichever is lower. The industry will kick and scream, but if they can get better terms from what the private-equity funds might offer instead, they should take them.This is but one troubled sector. Will hotel chains be next? Automakers? Restaurants? The entire economy is suffering from cash-flow problems. How can we bailout one sector but ignore most of the others? And that’s before we discuss small businesses, hourly workers and people in the gig economy.The least we can do is avoid many of the same errors we made the last time.(1) Many observers prefer the fire sales of Washington Mutual and Bear Stearns to cash-rich buyers.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • U.S. Jobless Rate May Soar to 30%, Fed’s Bullard Says
    Bloomberg

    U.S. Jobless Rate May Soar to 30%, Fed’s Bullard Says

    (Bloomberg) -- Federal Reserve Bank of St. Louis President James Bullard predicted the U.S. unemployment rate may hit 30% in the second quarter because of shutdowns to combat the coronavirus, with an unprecedented 50% drop in gross domestic product.Bullard called for a powerful fiscal response to replace the $2.5 trillion in lost income that quarter to ensure a strong eventual U.S. recovery, adding the Fed would be poised to do more to ensure markets function during a period of high volatility.“Everything is on the table” for the Fed as far as additional lending programs, Bullard said in a telephone interview Sunday from St. Louis. “There is more that we can do if necessary” with existing emergency authority. “There is probably much more in the months ahead depending on where Congress wants to go.”Massive AidBullard’s grave assessment of the world’s largest economy underscores the critical need for Congress and the White House to quickly find agreement on a massive aid program. The Fed last week restarted financial crisis-era programs to help the commercial paper and money markets, after cutting interest rates to near zero and pledging to boost its holdings of Treasuries by at least $500 billion and of mortgage securities by at least $200 billion.Read more: Fed Going All In to Save Economy. Here’s What Could Come Next“This is a planned, organized partial shutdown of the U.S. economy in the second quarter,” Bullard said. “The overall goal is to keep everyone, households and businesses, whole” with government support. “It is a huge shock and we are trying to cope with it and keep it under control.”The U.S. central bank bought $272 billion of government debt last week, of the more than $500 billion authorized, which Bullard emphasized should not be seen as a limit.More if Needed“This is unlimited and we can go much higher if necessary,” he said. “We are trying to provide as much support as we can to that market.”Commercial paper funding should provide support for corporations trying to roll over short term debt, Bullard said, and the Fed could look at buying other corporate debt.Read more: Fed Already About Halfway Through Bond-Buying Announced Sunday“We could certainly look at that,” he said. “We are already supporting very short term funding markets.”Bullard said Fed purchases of municipal debt are permitted for short term debt, and “that is probably the place we would want to concentrate on here” if the Fed were to go ahead with direct buying. At the same time, he said the Fed would need to be careful with such a program, and it could be problematic to pick and choose which debt to buy, just as European authorities have struggled with purchasing sovereign debt.Small BusinessesAs for small business lending, the Fed would need to set up a “brand new program,” which would be time consuming so it would make more sense to use existing small business lending programs or to have Congress guarantee bank loans, he said.Bullard said with an aggressive government response, activity should begin to bounce back. “I would see the third quarter as a transitional quarter” with the fourth quarter and first quarter next year as “quite robust” as Americans make up for lost spending. “Those quarters might be boom quarters,” he said.Read more: Top Economists See Some Echoes of Depression in U.S. Sudden StopThe goal should be to support American workers and businesses across the board, rather than picking individual companies or industries, such as the airline industry or hotels, for support. The U.S. shouldn’t lose companies or industries because of lack of support, he said.‘Totally Stupid’“It is totally stupid to lose a major industry because of a virus,” he said. “Why would you want to do that?”Bullard urged that unemployment insurance cover 100% of lost income for workers, and call it “pandemic insurance” since the disruption is intended to block the spread of the coronavirus.The St. Louis Fed’s view of the virus-related shutdowns on the economy is more dire than Wall Street. JPMorgan Chase & Co. expects gross domestic product to shrink at an annualized rate of 14% in the April-June period while Bank of America Corp. and Oxford Economics both see a 12% drop. Goldman Sachs Group Inc. sees a 24% plunge.(Updates to add additional comments from third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Coronavirus could prompt 'worst recession in a century' in UK
    Yahoo Finance UK

    Coronavirus could prompt 'worst recession in a century' in UK

    Deutsche Bank thinks the UK economy could shrink by 5.5% this year due to Covid-19 and efforts to contain it.

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