Bank of America (BAC)

[kennynah]

23 May 2008 05:43 GMT


Bank of America faces class action over auction rate securities
LONDON (Thomson Financial) - The law firm of Girard Gibbs LLP said it is has filed a class action lawsuit Bank of America Corp. alleging that the company deceived investors about the investment characteristics of auction rate securities and the auction market in which these securities traded.

Auction rate securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic "auctions."

The complaint alleges that Bank of America failed to disclose several material facts about the auction rate securities it sold to the class, the first being that the auction rate securities were not cash alternatives, like money market funds, but were instead, complex, long-term financial instruments with 30 year maturity dates, or longer.

Further, the auction rate securities were only liquid at the time of sale because Bank of America and other broker-dealers were artificially supporting and manipulating the auction rate market to maintain the appearance of liquidity and stability.

Bank of America and other broker-dealers routinely intervened in auctions for their own benefit, to set rates and prevent all-hold auctions and failed auctions, the claim alleges.

It added that Bank of America continued to market auction rate securities as liquid investments after it had determined that it and other broker dealers were likely to withdraw their support for the periodic auctions and that a "freeze" of the market for auction rate securities would result.

Girard Gibbs filed the suit on behalf of persons who purchased auction rate securities from Bank of America and its units between May 22, 2003, and February 13, 2008, and who continued to hold such securities as of February 13, 2008.

[kennynah]

27 May 2008 17:09 GMT

BAC plans to buy more China Construction stock
CHARLOTTE, N.C. (AP) - Bank of America Corp. said Tuesday it plans to raise its stake in China Construction Bank Corp. to nearly 11 percent.

The Charlotte-based bank said it will exercise part of the option it has to buy more common shares of the Beijing-based China Construction Bank. The option would be exercised under the terms of agreement when it first invested in the China bank in June 2005, when Bank of America bought a 9 percent stake in the bank in a $3 billion deal.

Bank of America said it intends to purchase 6 billion of the shares for nearly $1.9 billion or 2.42 Hong Kong dollars per share, on or about June 5, which would take its total stake to 25.1 billion shares, or 10.75 percent of China Construction bank's issued common shares. The 6 billion new shares may not be sold until Aug. 29, 2011, the company said.

Bank of America currently holds about 8.2 percent of the issued shares.

Since 2005, the two banks have launched nearly two dozen partnership projects, including a leasing business in Beijing and no-fee cash withdrawals from Bank of America's ATM machines in China.

Shares of Bank of America fell 15 cents to $33.78 in midday trading Tuesday.

[Chiron]

NEW YORK (Thomson Financial) - Bank of America Corp. Chief Executive Kenneth Lewis said he sees no reason for the bank to either raise capital, or to cut dividends, as feared by the financial markets.

Based on last year dividend and current price, yield at 11.54%!! No a single Spore bank can even match 1/3 of its yield, and how many companies listed in SG can beat it?

[kennynah]

yields are a consolation to the depressed stock price. it is so high, naturally due to the tanking of its shares price.

[HengHeng]

well they carry with them a time bomb called countrywide.

[Chiron]

Hi K, HH, what you have said are true, and personally I do not go for counters just for dividend plays.

I do see a window of opportunity where the risk/reward ratio is getting favourable. Current price is matching the last low in 2001 after the dot com burst.

cheers

[Chiron]

Up 22%. Ver nice run up

[kennynah]

chiron : hope u swee swee nap nap....on BAC....your V, a gutsy call, shd be doing well...congrats...

[ishak]

Investors sue Bank of America over auction rate securities
Friday, July 18, 2008
Kelsey Volkmann - St. Louis Business Journal

Investors filed a class-action lawsuit Thursday against Bank of America Investment Services Inc. and Bank of America Securities, alleging that brokers deceived them about their risk.

Bank of America offered and sold auction rate securities to the public as highly liquid cash-management instruments and as suitable alternatives to money market mutual funds, the suit alleges.

On Feb. 13, all of the major broker-dealers, including Bank of America, withdrew their support for the auctions, leaving the market to crumble and investors unable to access their money.

The investors involved in the suit bought the securities between June 11, 2003 and Feb. 13, 2008.

The lawsuit, filed the same day state regulators investigated Wachovia Securities in downtown St. Louis for its handling of auction rate securities, is pending in the U.S. District Court for the Southern District of Illinois.

The lawsuit alleges that Bank of America failed to disclose the following facts to investors: The auction rate securities were not cash alternatives like money market funds but were instead complex long-term financial instruments with 30-year maturity dates. The auction rate securities were only liquid at the time of the sale because Bank of America and other broker-dealers were artificially supporting and manipulating the market to maintain the appearance of liquidity and stability.

Bank of America and other broker-dealers routinely intervened in the auctions for their own benefit to set rates and to prevent all-hold auctions and failed auctions. Bank of America continued to market auction rate securities as liquid investments even after Bank of America and other broker-dealers determined that they would likely be withdrawing support for the periodic auctions and that a freeze of the auction rate securities market would result.

Auction rate securities are municipal or corporate debt securities or preferred stocks that pay interest at rates set through periodic auctions.

The instruments typically have long-term maturity dates or no maturity date.

The law firm representing the investors is Carey Danis, a national law firm based in St. Louis that aids represents victims of "corporate abuse, greed and neglect," according to the firm.

[Chiron]

Current price of 27.49 almost 50% above its low of 18+, which was not too long ago.

Maybe time for a retracement. Results out tonite.