Financial Biz Review: BofA Discusses Class Action Suit, Western Asset’s Secondary
Bank of America Corporation (NYSE:BAC) reports that it, along with certain of its current and former officers and directors, agrees to resolve a class action lawsuit that was brought in 2009 on behalf of investors who bought or held Bank of America securities at the time at which the firm announced plans to purchase Merrill Lynch. Through its terms, Bank of America would pay an amount of $2.43 billion and also set in place certain corporate governance policies. However, the payment is covered by the bank’s current litigation reserves and third quarter litigation expenses of $1.6 billion.
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Western Asset Mortgage Capital Corporation (WMC) has priced a 12 million share secondary at $22.20 per share compared to Thursday’s close at $23. Underwriters have an option to buy up to an additional 1.8 million shares.
The Spanish banks Banco Santander (NYSE:SAN) and Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) are among 7 in that country that do not require capital to pass the stress test which indicated that Spain’s lenders overall need €59.3 billion in capital. Marketwatch reports that “Results show banks mostly solvent, viable.”