Tomahawk, WI 04/04/2014 (Basicsmedia) – With the Dodd-Frank stress tests and the Comprehensive Capital Analysis and Review (CCAR) by the Fed both over, Bank of America Corp (NYSE:BAC) can get on with the business of trying to increase its customer base as well as trying to ensure that its present customers remain satisfied with the bank and do not leave it.

More Settlements

But the sins of the financial crisis of 2008 continue to still dog the bank — just as they continue to be headaches for all the other big banks. While the Federal Deposit Insurance Corporation (FDIC) has sued 16 banks including Bank of America for manipulating the benchmark Libor rate, the U.S. Attorney’s Office for the Eastern District of New York in Brooklyn is looking into whether it may have violated the provisions of the Federal Housing Administration (FHA)’s Direct Endorsement Program.

In the latest installment of an ongoing settlement saga, Bank of America will cough up $6.3 billion to the FHA to settle a lawsuit arising out of the problematic mortgage-backed securities it had put together and sold to Fannie Mae and Freddie Mac during the period leading up to the financial crisis. Bank of America will also repurchase mortgage securities valued at about $3.2 billion from Fannie and Freddie. This settlement will negatively impact the bank’s 1Q2014 income by $3.7 billion pretax.

Bank of America Corp (NYSE:BAC) is also said to be close to a settlement with the Consumer Financial Protection Bureau in a matter related to the sale of “add-on” services on credit cards. The Bank might pay more than $800 million to settle these allegations, as per the story first reported in the Wall Street Journal.

Future Direction

Despite all these troubles, Bank of America is in many ways better placed than its peers — Citigroup Inc (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC).

Bank of America may have spent more than $50 billion in legal battles so far but that is cushioned by the $2 trillion asset base of the bank. No wonder, Warren Buffett feels confident enough about the Bank’s long-term future to have invested $5 billion.

With ongoing branch closings, a new ‘Safe Balance’ initiative, focus on value-added services and a robust and popular website for online banking, Bank of America Corp (NYSE:BAC) can be confident that it has a bright future ahead.

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