UNITED STATES: ‘ Bank of America Close to Settling Department of Justice Mortgage Probes Deal Valued at $16-17 Billion ‘

#AceFinanceNews – UNITED STATES – August 06 – Bank of America is close to settling with the Department of Justice over mortgage probes in a deal valued at $16 billion to $17 billion, Dow Jones reported.

​The tentative deal would also include about $9 billion in cash penalties for the bank, according to a Wall Street Journal report.

Bank of America CEO Brian Moynihan and Attorney General Eric Holderspoke on the phone Thursday, and the bank soon after agreed to the basics of a deal, the Journal reported, citing sources familiar with the matter.

The Justice Department has been seeking $17 billion, while Bank of America has pushed for $13 billion, according to the Journal.


UNITED STATES: ‘ Federal Reserve Approve Capital Plan Under Financial Annual Stress of Bank’s Allowing Back-Door for Dividends to Increase ‘

#AceFinanceNews – UNITED STATES – August 06 – The U.S. Federal Reserve said on Wednesday it had approved a resubmitted capital plan from Bank of America, part of an annual stress test of banks’ financial robustness.

​In April, the Fed required Bank of America to resubmit its capital plan and to suspend planned increases in capital distributions after the bank disclosed it had incorrectly reported data used in its calculations.

The bank withdrew its previously planned increase in April after it found errors that reduced a key capital level by $4 billion.

Bank of America said it would increase its quarterly dividend to 5 cents per share from 1 cent per share, its first dividend hike in seven years.

Raising the dividend has been a top priority for Chief Executive BrianMoynihan. Prior to the 2008 financial crisis, the bank paid a quarterly dividend of as much as 64 cents per share.


BRUSSELS: ‘ Violate US Sanctions Against Blacklisted Countries You Pay the Price by Being Fined ‘

#AceFinanceNews – BRUSSELS – August 06 – France and Germany want a common European position on the large US fines on foreign banks, reports AFP.

The topic "is under discussion between Germany and France," a French finance ministry spokesperson said. BNP Paribas was recently fined a record €6.6bn for violating US sanctions against blacklisted countries, including Iran.

By EUobserver