One of the most troubled big banks in the U.S., Bank of America, is aggressively trying to turn it around and stop the massive sell-off of its stock. That's the good news.
The firm's share price is down nearly 50% since the beginning of this year, and CEO Brian Moynihan and his team are selling assets, trying to settle billion-dollar lawsuits, and laying 10,000 people off in a total restructuring in order to cut costs and gain capital.
By doing so, the firm is addressing investors' concerns one by one. The question is, will it work? As you'll see below, the firms' solutions still leave issues unresolved.
Problem: A proposed $8.5 billion settlement over mortgage backed securities (MBS) was rejected, which made investors worry that liabilities might cost much more and be an indication of future failed attempts to resolve lawsuits.
Solution: Bank of America is right now trying to put a multi-state probe into whether firms servicing mortgages used bogus documents to justify foreclosures behind it with a reported settlement deal. The deal wouldn't resolve all of the state's probes, but most of them, according Bloomberg.
But wait, that's just one deal. Bank of America still has to fight many more lawsuits...
Find out more at http://www.businessinsider.com/the-most-troubled-bank-in-the-us-bank-of-america-2011-8
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