THERE WERE WARNING SIGNS OF BANK OF AMERICA'S MISCALCULATION: It shouldn't surprise anyone that Bank of America had been mistakenly valuing debt instruments inherited from Merrill Lynch, writes Mayra Rodríguez Valladares, managing principal at MRV Associates, for The New York Times. Those things are hard to value, or even to get data to try to value. Questions also arise about whether Bank of America has any more structural control issues, or if other banks have similar problems.
BANK OF AMERICA STUDYING SOCIAL BONDS FOR VETERANS: The Charlotte bank has already dipped its toes in the water with a green initiative bond and a pay for performance bond for prisoner reentry services, and now Bank of America is examining how the financing tool can be used to help military veterans in their return to civilian life.
BOFA SELLS BRANCHES IN RURAL KANSAS: The bank has continued shedding locations outside metro areas, this time selling 11 branches to First Kansas Bank, KSN.com reports.
FREDDIE MAC SET TO FUND TRAILER PARK PURCHASES: It's part of the government-controlled agency's mandate to increase access to housing for low-income families, Bloomberg reports. The loans will be packaged into bonds.
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HEDGE FUNDS JUMPING INTO DELINQUENT MORTGAGES: It's one of the latest hot investments, The New York Times reports. They're betting on buying the loans at a discount and then restructuring them in a way that gets borrowers resuming payments.
COMMUNITYONE BANCORP HITS THIRD STRAIGHT QUARTER OF PROFIT: The Charlotte bank rode expense savings largely from integrating Bank of Granite and CommunityOne to $1.3 million in net income, despite interest income and noninterest income falling.
METLIFE PROFIT GROWS: The insurer made $1.3 billion, weighed down by a settlement with New York authorities.