Boston, MA 06/08/2014 (wallstreetpr) – One of the world’s most important financial institutions, Bank of America Corporation (NYSE:BAC) is all set to transform its image by doing away with its past debts and disputes and move forward towards new growth prospects. BAC serves different customers across the globe, from individual clients to big corporate houses, offering a wide range of financial services like banking, asset management, and investment and so on.
Settling Past Affairs
As a consequence of recent state of affairs, Bank of America Corporation (NYSE:BAC) consented to pay fines worth $772 million for settling charges of unfair billing for credit card products and deluding marketing practices. This consisted of $727 million compensation relief to customers, and $20 million and $25 million as fines to Consumer Financial Protection Bureau and Office of the Comptroller of the Currency respectively.
BAC is also in talks to settle civil allegations by Justice Department over soured mortgage practices of the bank, by paying a huge sum of $12 billion. This came in addition to their agreement to pay $6.3 billion accusing BAC of false representation of mortgage loans.
No Worries For Investors
Even when Bank of America Corporation (NYSE:BAC) is on its disputes settling spree with payment of huge sums of money, its investors seem to be calm, which is prevalent with a 2.16% rise in stock prices over the past week’s trading. This is mainly attributed to the fact that removal of past allegations will benefit the investors by way of higher earnings per share. Approximately 171% rise in the net income for FY13 to $11.4 billion has led to increased EPS of $0.90 in FY13 from $0.25, giving 2.6 times higher return.
Such facts give positive indications about the stock to the investors. More good news for investors came when BAC mentioned its intention to raise the quarterly common stock to $0.05 per share and also authorized $4 billion repurchase program of common stock.
Better Customer Service
A subsidiary of Bank of America Corporation (NYSE:BAC), MNBA has come up a new variety of credit cards i.e., low rate credit cards with only 6.5% p.a. charge on transferring balance and money. This will help customers save a large amount of money on interest rates and enable them to use their savings in making large purchases or for everyday spending.
Apart from this, BAC is also looking forward to expanding its merchant services, known to be the best in the world, in Canadian markets.
