Is Bank of America Only the First of More Requests for Stronger Banks?

Bank of America (NYSE:BAC) could face “intensified scrutiny and greater restrictions” if regulators find unsatisfactory progress in the bank’s compliance with a May 2009 Memorandum of Understanding, according to The Wall Street Journal.

This memorandum, which was not made public, specifies problems to be fixed by the bank regarding governance and risk and liquidity management. At recent meetings with the bank’s board, regulators have requested improved compliance with the memorandum.

According to Bank of America, it has satisfied the demands outlined in the memorandum. In fact, a person familiar with the situation told The Wall Street Journal that “it’s time to take us out of the penalty box.” Bank of America spokesman, Larry Di Rita, declined comment on The Wall Street Journal report.

Here’s how Big Banks (NYSEARCA:KBE) are trading on the news:

  • Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $5.37, down $0.12, or 2.19%. Its market capitalization is $54.43 billion. They have traded in a 52-week range of $5.13 to $15.31. Volume today was 209,862,264 shares versus a 3-month average volume of 293,008,000 shares. The company’s trailing earnings are $-0.31 per share. The company pays a dividend of $0.04 per share for a dividend yield of 0.70%. About the company: Bank of America Corporation accepts deposits and offers banking, investing, asset management, and other financial and risk-management products and services. The Company has a mortgage lending subsidiary, and an investment banking and securities brokerage subsidiary. Get the most recent company news and stock data here >>
  • JPMorgan Chase & Co. (NYSE:JPM): JPM shares recently traded at $29.64, down $0.27, or 0.9%. Its market capitalization is $112.56 billion. They have traded in a 52-week range of $27.85 to $48.36. Volume today was 22,126,912 shares versus a 3-month average volume of 46,237,600 shares. The company’s trailing P/E is 6.32, while trailing earnings are $4.69 per share. The company pays a dividend of $1.00 per share for a dividend yield of 3.30%. About the company: JPMorgan Chase & Co. provides global financial services and retail banking. The Company provides services such as investment banking, treasury and securities services, asset management, private banking, card member services, commercial banking, and home finance. JP Morgan Chase serves business enterprises, institutions, and individuals. Get the most recent company news and stock data here >>
  • Citigroup, Inc. (NYSE:C): C shares recently traded at $24.73, down $0.27, or 1.08%. Its market capitalization is $72.30 billion. They have traded in a 52-week range of $21.40 to $51.50. Volume today was 33,221,688 shares versus a 3-month average volume of 56,198,400 shares. The company’s trailing P/E is 6.59, while trailing earnings are $3.75 per share. The company pays a dividend of $0.04 per share for a dividend yield of 0.20%. About the company: Citigroup Inc. is a diversified financial services holding company that provides a broad range of financial services to consumer and corporate customers around the world. The Company’s services include investment banking, retail brokerage, corporate banking, and cash management products and services. Get the most recent company news and stock data here >>
  • Wells Fargo & Company (NYSE:WFC): WFC shares recently traded at $24.16, down $0.02, or 0.08%. Its market capitalization is $127.41 billion. They have traded in a 52-week range of $22.58 to $34.25. Volume today was 22,478,040 shares versus a 3-month average volume of 42,074,100 shares. The company’s trailing P/E is 8.95, while trailing earnings are $2.70 per share. The company pays a dividend of $0.48 per share for a dividend yield of 1.90%. About the company: Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage, leasing, credit cards, and consumer finance. The Company operates through physical stores, the Internet and other distribution channels across North America and elsewhere internationally. Get the most recent company news and stock data here >>
  • Morgan Stanley (NYSE:MS): MS shares recently traded at $13.69, up $0.09, or 0.66%. Its market capitalization is $26.39 billion. They have traded in a 52-week range of $11.58 to $31.04. Volume today was 21,014,309 shares versus a 3-month average volume of 33,939,000 shares. The company’s trailing P/E is 8.98, while trailing earnings are $1.53 per share. The company pays a dividend of $0.20 per share for a dividend yield of 1.40%. About the company: Morgan Stanley, a bank holding company, provides diversified financial services on a worldwide basis. The Company operates a global securities business which serves individual and institutional investors and investment banking clients. Morgan Stanley also operates a global asset management business. Get the most recent company news and stock data here >>
  • The Goldman Sachs Group, Inc. (NYSE:GS): GS shares recently traded at $90.08, down $1.22, or 1.34%. Its market capitalization is $44.35 billion. They have traded in a 52-week range of $84.27 to $175.34. Volume today was 5,058,325 shares versus a 3-month average volume of 8,242,950 shares. The company’s trailing P/E is 13.70, while trailing earnings are $6.57 per share. The company pays a dividend of $1.40 per share for a dividend yield of 1.50%. About the company: The Goldman Sachs Group, Inc., a bank holding company, is a global investment banking and securities firm specializing in investment banking, trading and principal investments, asset management and securities services. The Company provides services to corporations, financial institutions, governments, and high-net worth individuals. Get the most recent company news and stock data here >>

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