DoJ Puts Bank of America in its Sights, AIG’s Solid Quarter, and 3 More Hot Stocks

Bank of America (NYSE:BAC): The Department of Justice is planning to file civil charges against Bank of America over a sale of one or two mortgage bonds, according to a statement submitted by the bank on Thursday. The ”jumbo” mortgage bonds were comprised of loans which were too big to be guaranteed by Fannie Mae and Freddie Mac. The SEC is also contemplating a lawsuit over the bonds.


American International Group (NYSE:AIG): AIG shares are up after the company announced EPS of $1.12, beating by $0.26. AIG’s board declares a dividend of $0.10 per share and has authorized a $1 billion buyback. Book value per share (excluding AOCI) reached $61.25, up 11 percent year-over-year, but off 2 percent from the first quarter due to marks on higher interest rates. P&C operating income came in at $1.1 billion, up 17.5 percent over last year. The adjusted combined ratio (excluding catastrophes) improved to 96.5 from 98.3 as adjusted net premiums came in at $9.3 billion, up 4 percent.


Royal Bank of Scotland Group plc (NYSE:RBS): In its earnings report, RBS has named the head of its retail bank, Ross McEwan, as CEO to replace the outgoing Stephen Hester, surprising nobody. For the first half of the year, net profit was 535 million pounds versus a loss of 2.03 billion pounds last year. Revenue fell to 10.61 billion pounds from 11.69 billion pounds after the exclusion of the value of own credit and other one-offs.


GlaxoSmithKline (NYSE:GSK): India’s Intellectual Property Appellate Board (IPAB) has voided a GlaxoSmithKline patent for the company’s Tykerb breast cancer drug on the basis that it violates an earlier court ruling that disallowed patents for incremental innovation. However, the IPAB did affirm patent protection for the treatment’s active pharmaceutical ingredient, lapatinib.


Lockheed Martin (NYSE:LMT): The defense department maintains that there are no plans in place to cease operations on the F-35 fighter jet program, or on the program for the development of a new stealth bomber, in the wake of leaked documents from a budget review signaling that the programs might be eliminated as one way to deal with deep budget cuts. The F-35 program alone is worth $392 billion.


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