The Federal Reserve made the unusual request that Bank of America offer a contingency plan, according to a report by the Wall Street Journal, which cites people familiar with the situation.
Bank of America executives reportedly gave the central bank a list of options, which the issuance of a separate class of shares tied to the performance of its Merrill Lynch securities unit, sources told the Journal, although CEO Brian Moynihan isn't expected to make that move any time soon.
Both Bank of America and the Fed did not respond to requests for comment by the paper.The fresh scrutiny from the central bank is the latest headache for the largest bank in the U.S. Bank of America is seeking approval of its $8.5 billion mortgage settlement, which the FDIC has already objected to. Last week. U.S. Bancorp subsidiary U.S. Bank sued Bank of America over Countrywide loans. Bank of America has also made several moves recently to shore up capital. The bank struck a deal to sell preferred stock and warrants to billionaire investor Warren Buffett for $5 billion. Bank of America has also reportedly slashed its mortgage business and has also cut its China Construction Bank stake. -- Written by Robert Holmes in Boston.
>To contact the writer of this article, click here: Robert Holmes. >To follow Robert Holmes on Twitter, go to http://twitter.com/RobTheStreet. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV