Bank of America Corp (NYSE:BAC) Bounded by Penalties


Dallas, Texas 08/29/2013 (Financialstrend) – The shares of Bank of America Corp (NYSE:BAC) went down by 2.62% during the last trading session. The shares of BAC were closed at the price of $14.11. In spite of this decline faced by the shares of Bank of America Corp, they managed to remain at the side of the highest price in the 52-week period. It could be observed that the price range of the stock of Bank of America in the 52-week timeframe was lying between the values of $7.83 and $15.03. At present, Bank of America Corp has the total of 10.74 billion outstanding shares in the market with the market capitalization value of $151.59 billion.

Always, the Bank of America is amidst any legal allegation which had put a serious dent over the image of the bank. It is to be noted that the Bank of America had dissolved its Merrill Lynch unit in the recent times only and the bank has now ended up with the obligation for paying $160 million. This obligation is against the settlement in a racial bias suit against the bank which is currently ongoing. A longtime, George McReynolds, Merrill broker had alleged the Bank of America for providing the lower positions to blacks thereby keeping the higher positions for whites.

This news would be a matter of shame for the Bank of America because of the amount involved in this kind of case. Further, it is to be noted that the amount of penalty would be the largest sum ever given in a suit of racial discrimination against an American employer.

The parties have been scheduled for presenting the settlement agreement to federal judge by September 3, 2013 in Chicago.

The 6 largest banks, which are led by JP Morgan Chase & Co and Bank of America, have piled up around $103 billion in legal costs following the financial crisis, over all dividends that have been paid to the shareholders in last 5 years.