BofA earnings best in years but tougher task ahead

July 15, 2015

The bank run by Brian Moynihan cranked out a second-quarter profit of $5 bln as costs hit their lowest level since 2008. Return on equity remains subpar, though. Without some one-off extras, BofA’s core earnings would need to rise almost 40 pct to beat its cost of capital.

BofA loss provides valuable mega-bank perspective

April 16, 2014

Some $6 bln of legal costs chewed up all the U.S. bank’s Q1 profit. It took half as much again to cause a quarterly loss at JPMorgan last year. BofA’s bad results, however, probably will leave Citi boss Mike Corbat wondering why his better-performing bank got stiffed by the Fed.

Citi, BofA prove too big to punish harshly

February 17, 2012

The banks will pay fines - $158 mln and $1 bln respectively - to settle claims they defrauded Uncle Sam through mortgage insurance. Citi even admitted it. Its awful quality control lapses make a ban on government business seem in order. But Washington needs big banks too much.

Citi, BofA give investors only reasons to fret

January 17, 2013

Both U.S. banks had a messy fourth quarter full of litigation expenses and other charges. Stripping those out still left each with measly single-digit returns. With rivals more solid, BofA chief Brian Moynihan and new Citi boss Mike Corbat are under even more pressure to perform.

Orcel bonanza shows how far banks must go on pay

March 14, 2013

UBS stumped up $26 mln to prise investment-bank head Andrea Orcel from BAML - making a mockery of so-called retention packages. Switzerland may be clamping down on high pay. But it takes only one firm to perpetuate the financial sector’s compensation problem.

Bonus bonanza won’t heal BofA/Merrill divide

January 11, 2010

Bumper bonuses might be enough to keep some from actively seeking new employment. But that won’t stop rivals from aggressively knocking.