Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: Bank of America, JPMorgan Chase,Citigroup, Wells Fargo and Goldman Sachs Group

CHICAGO, Aug. 25, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Bank of America Corporation (NYSE:BAC-Free Report), JPMorgan Chase & Co. (NYSE:JPM-Free Report), Citigroup Inc. (NYSE:C-Free Report), Wells Fargo & Co. (NYSE:WFC-Free Report) and Goldman Sachs Group, Inc. (NYSE:GS-Free Report).

www.zacks.com. " border="0" alt="Zacks Investment Research, Inc., www.zacks.com. " align="middle" src="http://photos.prnewswire.com/prnvar/20101027/ZIRLOGO"/>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday's Analyst Blog:

BofA Reaches $17B Mortgage Settlement, Q3 EPS to Take Hit

Ending months of speculation, Bank of America Corporation (NYSE:BAC-Free Report) has finally reached a $16.65 billion settlement with the U.S. Department of Justice (DOJ), a few other regulators and Attorneys General (AGs) of six states. This cheered investors, with the shares raising more than 4.1% to close at $16.16 on Thursday.

Nevertheless, BofA expects the settlement to lower third-quarter 2014 earnings by 43 cents per share.

The settlement resolves all the actual and probable civil claims related to the sale of residential mortgage-backed securities (RMBS) and collateralized debt obligations (CDOs) by Countrywide Financial Inc and Merrill Lynch & Co (both acquired by BofA in 2008) before 2009. Further, it also settles the repurchase claims on loans originated by BofA from 2009 to 2013.

Apart from the DOJ, other regulators involved included the Securities and Exchange Commission (SEC), the Federal Housing Authority (FHA), the Government National Mortgage Association (Ginnie Mae) and the Federal Deposit Insurance Corporation (FDIC). Moreover, the AGs from California, Delaware, Illinois, Kentucky, Maryland and New York were part of the deal.

Settlement Terms

Of the total $16.65 billion settlement amount, BofA will be paying $9.65 million in cash and the remaining $7 billion in form of consumer relief. Of the cash portion, $5.02 billion is civil monetary penalty, while $4.63 billion represents compensatory remediation payments.

Notably, the civil monetary penalty going to the Treasury would roughly aggregate $5 billion, while the six states get less than $1 billion for sharing among them.

Consumer relief will be in the form of principle write-downs and modified terms of loans. Further, new mortgage originations for low and medium-income borrowers, forgiving the remaining principal owed on properties that have been vacated but not foreclosed, and the demolition of deserted homes would also form part of borrower relief.

BofA remains committed to complete the delivery of relief to borrowers by Aug 31, 2018. Notably, an independent observer will supervise the company's progress in this respect.

Additionally, BofA accepted the accusation that both Countrywide and Merrill Lynch had misrepresented facts about the underlying loans while selling them to investors.

However, the settlement does not absolve BofA from probable criminal charges, and law enforcement agencies can also file criminal and civil charges against individual officials. Further, the company's ongoing case regarding 'High Speed Swim Lane' (HUSTLE) does not form part of the settlement.

Road Ahead

Disentangled from the huge litigation snares, we believe BofA will presently focus on its organic expansion. Though the company has remained profitable in the recent quarters (aside from Q1 of 2014), the results were mostly driven by expense-savings initiatives.

According to us, given its diversified footprints and product mix, BofA is well positioned to drive revenue growth. With gradual recovery of the economy, we expect further rise in loan demand, despite a tough industry backdrop.

Currently, BofA carries a Zacks Rank #3 (Hold).

Mortgage Settlements of Other Banks

In the less than a year, the banking regulators have been able to settle three major mortgage issues (including this one). JPMorgan Chase & Co. (NYSE:JPM-Free Report) had announced a $13 billion-settlement to clear similar charges in Nov 2013. This was followed by Citigroup Inc.'s (NYSE:C-Free Report) mortgage accord of $7 billion in Jul 2014.

However, in our opinion, this historic settlement does not spell the end of mortgage-settlement deals. The law enforcement agencies are now expected to shift their attention to other banks including Wells Fargo & Co. (NYSE:WFC-Free Report) and The Goldman Sachs Group, Inc. (NYSE:GS-Free Report), among others which have been accused of selling flawed MBS prior to the crisis.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on BAC - FREE

Get the full Report on JPM - FREE

Get the full Report on C - FREE

Get the full Report on WFC - FREE

Get the full Report on GS - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
910Telecom exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and exchanges.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
In recent years, containers have taken the world by storm. Companies of all sizes and industries have realized the massive benefits of containers, such as unprecedented mobility, higher hardware utilization, and increased flexibility and agility; however, many containers today are non-persistent. Containers without persistence miss out on many benefits, and in many cases simply pass the responsibility of persistence onto other infrastructure, adding additional complexity.
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...