U.S. banks led by JPMorgan Chase & Co. and Wells Fargo & Co. have bought a record amount of municipal debt. That demand is now at risk under a Federal Reserve proposal that excludes local bonds from a list of easy- to-sell assets.
Bank of America Corp., the second- biggest U.S. lender, said the Department of Justice may file another suit tied to mortgage bonds and raised its estimate of possible added losses from legal and regulatory matters by 82 percent to $5.1 billion.
JPMorgan Chase & Co., the biggest U.S. bank, is using cheap funding from government-chartered institutions to meet new regulations designed to ensure it won’t need a taxpayer bailout in any future crisis.
Bank of America Corp. , seeking to reduce risk and meet new capital standards, upgraded billions of dollars of distressed mortgage bonds by repackaging them into new securities using a variation of a Wall Street technique that failed during the credit crisis.
Bank of America Corp. , under government pressure to curb private-equity investments, plans to sell $1.2 billion of commitments to funds managed by Warburg Pincus LLC as about 30 employees join two new bank-affiliated ventures, said two people with direct knowledge of the matter.
Bank of America Corp., the lender that’s divesting assets to raise capital, agreed to sell 80.8 million shares of HCA Holdings Inc. back to the health-care company for $1.5 billion. HCA’s stock jumped 12 percent.