Tomahawk, WI 06/06/2014 (Basicsmedia) – Bank of America Corp (NYSE:BAC) has passed through tumultuous times down the years. Way back in 2011, when BAC was facing money-crunch, Warren Buffet poured out $5.25 billion, choosing to buy 700 million BAC shares, drawing 6% dividend every year.

Warren Buffet’s Long-sighted Vision Helped Him Garner $6 Billion In 2013

A couple of weeks back, when Bank of America Corp (NYSE:BAC)’s shares plummeted in excess of 20% in a day’s trade, fears pertaining to its future stoked around, swirling the story about Buffet’s payout through Berkshire Hathaway, into prominence. Many echoed that Buffet came as a savior towards BAC’s shares in 2011, but what Buffet envisaged, many myopic individuals failed to see, at that juncture! In fact, the US’ 5th largest equity investment bank – BAC, helped Buffet notch up $6 billion, towards the end of 2013! It speaks volumes about Warren Buffet’s deal in 2011 and how it has benefited him more than BAC!

Causes Of BAC’s Retrenchment From Ireland

Meanwhile, amidst growing diatribes against Bank of America Corp (NYSE:BAC)’s future in the myopic circles, the American bank chose to shrink its net derivatives business, spanned across the precincts of Ireland, by a whopping $169 billion over the last couple of years, in a bid to simplify its holistic accounting. The contracts have been deliberately moved to London.

Confidential statements flutter around that the derivatives were primarily booked and created by BAC’s London office; the move is in order to simplify the bank in restructuring itself. Under the Irish Accounting Standards, any bank located within the country need to submit regular reports associated with gross liabilities and derivative assets, despite the presence of any contractual agreement between involved parties. This is a norm that portrays lingering chance of bankruptcy.

A $12 billion Payout Mandatory

Lately, BAC has apparently been hedged into pay $12 billion in order to foster settlement of probes by the US Justice Department empowered by quite a few states, that brought into limelight Bank of America Corp (NYSE:BAC)’s malpractices of allegedly handling myriad shoddy mortgages.

A $5 billion shall be strangled out and is expected to power consumer relief drives that comprise helping homeowners reduce principal amounts, monthly payouts, and removal of blights from struggling communities.

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