Bank Of America Settlement Viewed As Blueprint For More Pacts |
| Wall Street Journal - Jun 29, 2011 |
The $8.5 billion pact that Bank of America Corp. (BAC) reached with a group of institutional investors Wednesday could be a blueprint for claims other banks face over soured mortgage-backed securities.
Though analysts were split in their opinions as to whether such a result would be good or bad for banks, investors expressed relief that a major worry of the financial crisis could be put in the rear-view mirror.
Bank of America, in its settlement, paid more than most analysts expected but the pact was viewed in the market as removing a significant question mark from the company's future. Shares rose 3.3% to $11.18.
Meanwhile, shares of other banks rose as investors hoped they could now use the Bank of America settlement as a basis for their own agreements. J.P. Morgan Chase & Co. (JPM) rose 2.4% to $40.50, while Citigroup Inc. (C) advanced 2.9% to $41.33 and Wells Fargo & Co. (WFC) added 1.3% to $27.86.
Read Full Article from Wall Street Journal
- Posted: 2011-06-29 13:48:31
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