Bank of America Corporation BAC announced two GSE settlements for a total of $2.8bil, driving a 4Q10 rep-and-warranty provision of $3.0bil ($0.20/shr) relating to just GSE, KBW reports.
“BAC will also record a $2.0bil ($0.20/shr) goodwill impairment in 4Q10,” KBW writes. “We're lowering our 4Q10 EPS estimate to $0.04 from $0.20 as a result. While a positive, BAC continues to have both GSE and private-label exposures, which will likely continue to drive future rep-and-warranty losses, in our opinion.”
Bank of America Corporation closed Monday at $14.19.
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Posted In: Analyst RatingsBank of America CorporationFinancialsKBWOther Diversified Financial Services
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