Bank of America (BAC) Selling Billions More In Mortgages
Stocks continued moving downward in today’s trading. Earnings season is set to begin and analysts are expecting a slower-than-hoped for 2.8% growth for the quarter. If earnings come in better than expected it could cause a near-term pickup in the market, Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management, said. He continued to say “I think there’s still ample areas for concern,” such as policy worries in Washington and uneven economic activity.
AIG (NYSE:AIG) was one of the insurer’s that was bailed out by the government back in 2008 with a total of $182 billion in funds. News was released Tuesday morning that they may join a lawsuit against the government, after saying that the terms of the deal were unfair. The Federal Reserve Bank, who issued the bailout, said that had AIG felt the terms were unfair they could have chosen to go bankrupt. This news comes as a shock after the company recently used a high-profile ad campaign to thank the American public for the bailout. Mark Williams, a former Federal Reserve bank examiner, said “If AIG enters this suit it would be the equivalent of a patient suing their doctor for saving their life.” Williams continued to say “AIG needs to look at only itself as a company that recklessly engaged in excessive risk taking. Government action gave AIG a second life.”
Bank of America (NYSE:BAC) announced early Tuesday that they would be selling collection rights on another $100 billion of mortgages. This announcement comes after the bank said yesterday that it would be selling $300 billion of it’s mortgage servicing rights. They are expected to announce more of these MSR sales in the coming weeks. Dan Frahm, a Bank of America spokesman, declined to comment on the specific transactions. He did say that the company has been selling these rights for years. “By reducing the size of our portfolio, we improve customer service capacity and resolve legacy mortgage issues and reduce risk in our portfolio.”
Newcastle Investment (NYSE:NCT) was trading up over 2.6% on Tuesday morning after tcompany announced that it priced its public offering of common stock at $9.35 per share. Along with this news, the company also increased their size offering from 40 million to 50 million that will total gross proceeds of $467.5 million.
Nokia Corporation (NYSE:NOK) was trading down over 4.5%. The company had teamed up with Microsoft to try and make some headway in the smart phone market dominated by Apple and Samsung. The current windows phone only has about 3% of the market share. Nokia CEO, Stephen Elop, said “anything is possible” for their next move. They plan on exploring other alternatives and options. “In the current ecosystem wars we are using Windows Phone as our weapon. We are always thinking about what’s coming next… Today we are committed and satisfied with Microsoft, but anything is possible.”
All the best,