Tag:
preferred shares
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Latest Headlines
Bank of America sheds shares of CCB
Bank of America has announced it will sell 10.4 billion common shares in China Construction Bank Corporation (CCB), virtually its entire stake, to private investors. The deal will generate nearly $3 billion in Tier 1 capital over time and an after-tax gain of approximately $1.8 billion.
The sa
Bank of America: capital looms as a huge issue
Bank of America has steadfastly maintained that it is in decent position regarding Basel III capital requirements.
CEO Brian Moynihan has further said that a large capital raise would not be necessary because the bank could raise enough capital via retained earnings and asset sales. The decisi
Bank of America exchange plans knocks stock
The news that Bank of America was planning to issue about 400 million common shares, which will be exchanged for preferred shares, did not go over all that well.
The stock tanked. CEO Brian Moynihan has consistently said that the bank did not need to issue common stock to meet its capital requ
A clarification on Buffett's investment in Bank of America
Mea Culpa. Not too long ago I wrote an item about Warren Buffett's deal to invest $5 billion in Bank of America via preferred shares. I erroneously stated that, as cumulative perpetual preferred shares, the proceeds count toward Tier 1 capital (albeit on a restricted basis). That is not the case.
Bank of America sells most of CCB shares
Brian Moynihan has been adamant that Bank of America will not need to punish common shareholders by issuing more shares to raise Tier 1 capital, claiming that the troubled bank has plenty of assets to sell.
Moynihan has been making good on his word as of late. Bank of America, as expected, ann
Despite crazy takeover rumor, Bank of America not in danger of failing
A crazy rumor swept through Wall Street this week: JP Morgan would imminently take over Bank of America in a deal that would be "supported" by the federal government with a $100 billion investment in preferred shares in the combined entity or via a souped-up guarantee of deposits.
No one bel
Morgan Stanley wins praise for MUFJ move
It was big news when Goldman Sachs ( NYSE: GS ) announced it would buy back the $5.5 billion in preferred shares it sold to Warren Buffett at the height of the financial crisis. The face-saving deal was exceedingly expensive for Goldman, as they carried a massive 10 percent dividend, which amoun
Goldman earnings reflect principal investments
If the it weren't for the massive $5.64 billion repayment to Warren Buffett for his souped-up preferred shares, Goldman Sachs ( NYSE: GS ) would've hit one out of the ball park. Still, it still managed to beat analysts expectations for the first quarter. It reported $1.56 a share, compared with
Goldman to buyback Buffett's preferred shares
It's easy to see why Goldman Sachs ( NYSE: GS ) has been hankering for some time to buy back the preferred shares it sold Warren Buffett at the height of the financial crisis. The sweetheart deal started looking somewhat less shrewd for the gilded financial firm after the crisis passed.
Buff
Fed orders more stress tests, dividend hikes coming?
Remember all the stress test drama from 2009? Get ready for a repeat because the Federal Reserve has just ordered that the 19 largest banks must demonstrate their capital is adequate to survive another economic downturn. Banks are required to submit capital plans and detailed balance sheet data by
