NEW YORK ( TheStreet) -- Shares of Bank of America (BAC) rose in extended trades on Wednesday after the bank said it's secured additional time to negotiate in a dispute with a large bondholder group over about $47 billion in soured mortgage backed securities.
Charlotte, N.C.-based Bank of America was facing a deadline this week to respond to allegations raised by attorneys for the bondholders, which include Pacific Investment Management Co., BlackRock (BLK) and the New York Federal Reserve.
Wall Street Journal is reporting Bank of America is now in settlement talks with some of its largest mortgage investors, a move that it said would represent a "major shift in strategy for CEO Brian Moynihan, who has pledged to fight against having to repurchase any of the securities.
The stock was last quoted at $12.67, up 3.1%, on volume of 11.2 million, according to Nasdaq.com. Based on a regular session close at $12.29, the shares are down almost 18% year-to-date.
SciClone PharmaceuticalsA big loser in late trades was SciClone Pharmaceuticals (SCLN), whose shares fell nearly 8% to $3.68 after the bell with around 20,000 shares changing hands. Weighing on the stock was news that a phase 2b clinical trial of the company's proposed hepatitis B treatment, SCV-07, had missed its primary endpoint. "Although the data showed an interesting biological signal, due to the rapidly changing landscape of effective treatments which increase the complexity and risks of developing drugs in chronic HCV, we have decided not to continue development in this indication," said Friedhelm Blobel, the company's CEO and president, in a statement. The setback comes with SciClone's shares having gained 75% this year, and the company said it still plans to continue development of the drug for the prevention of oral mucositis in patients with head and neck cancer with a phase 2b study for this indication expected to begin early next year.
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