BofA Boffo Payout; Nyet to Big Macs; and HP’s Big Little Surprise

Would you like that in small bills?

Image courtesy of jscreationzs/FreeDigitalPhotos.net

Image courtesy of jscreationzs/FreeDigitalPhotos.net

Bank of America just set a new record but they probably wont be bragging about this particular accomplishment. The bank officially (as of tomorrow, anyways) holds the dubious distinction of having to pay the largest settlement ever to settle a number of allegations brought by Federal and state authorities over its sales of mortgage-backed securities leading up to the 2008 financial crisis. That magical number weighs in at a monstrous $17 billion easily surpassing the paltry $13 billion that JP Morgan Chase had to pay to settle similar allegations. The money will be divided with $7 billion going towards consumer relief and the rest going towards paying back Uncle Sam for all the misery it caused. But that’s not all. As part of the deal, BofA actually has to admit – ADMIT – wrongdoing. Countrywide Financial and Merrill Lynch will also be held to the task as the bulk of bad mortgages came courtesy of them when BofA acquired them in 2008. Of course no actual heads will roll. Or will they? One Los Angeles US attorney filed a civil suit against Countrywide co-founder Angelo Mozilo. While BofA must not have been too happy about the settlement, Wall Street sure was as shares of the bank took a little climb following the news.

No need to supersize that just yet…

Image courtesy of tiverylucky/FreeDigitalPhotos.net

Image courtesy of tiverylucky/FreeDigitalPhotos.net

You know Russia is royally ticked off at the US when McDonalds starts to suffer. Of course that wasn’t the official line coming out of the Kremlin, mind you. But it is true that four McDonald’s in Moscow were just shuttered for “sanitary reasons.”  One of the “temporarily” shuttered eateries happens to have been one of the most frequented McD’s in the world. In fact, Russia is one of the biggest markets for McDonalds. When asked if the closures had anything to do with the sanctions, officials referred to the “sanitary” statement without actually answering the question. Hmmm. However, there are still well over 430 McDonalds in Russia. For now, anyways.

Surprise surprise…

Image courtesy of jannoon028/FreeDigitalPhotos.net

Image courtesy of jannoon028/FreeDigitalPhotos.net

HP surprised everyone today, perhaps even itself, as it reported increased revenue in its earnings. While it was a modest 1% gain, it was nothing to scoff at. The increase was due in large part to its personal computer division which took in a plump 12% increase. The company is currently undergoing a major overhaul. Which is kind of ironic as my brand new HP laptop (I purchased it in February) is also undergoing a major overhaul at Geek Squad headquarters –  that is after already spending lots of quality phone time with several Geek Squad technicians over the last few months – but I digress. Profits came in at just under a billion which might seem impressive. But it’s not since last year at this time the HP reported $1.4 billion in profits.

 

 

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