Reuters reported on Friday that Bank of America was considering additional assets to boost regulatory Tier 1 capital. The recently announced that its moves to issue new common while retiring preferred shares and long-term debt would increase its Tier 1 capital by $3.9 billion.
Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.
Tuesday's winner among large U.S. banks was People's United Financial (PBCT) of Bridgeport, Conn., with shares rising 1% to close at $12.84.
Based on a 16-cent quarterly payout, the shares have a dividend yield of 4.95%, which is a very aggressive payout for the company, which is trying to leverage excess capital.People's United was included among TheStreet's 10 Large Banks With Very Strong Capital, with a Sept. 30 Tier 1 common equity ratio of 15.00%, according to SNL. The shares look expensive in the current environment, trading for 1.5 times tangible book value and 15 times the consensus 2012 EPS estimate of 85 cents, among analysts polled by FactSet. Interested in more on People's United Financial? See TheStreet Ratings' report card for this stock. Shares of MetLife (MET) rose only slightly to close at $31.20, even though the life insurer took a major step as part of its plan to lose its designation as a bank holding company, through its deal to sell most of its MetLife Bank subsidiary to General Electric (GE) unit GE Capital. While the deal certainly looks like a good one for both companies, since GE Capital is looking to expand its deposit base and MetLife's banking business provides such a small boost to its revenue, it appears that even after MetLife completes its exit from the banking business by selling its mortgage origination operations, the company will still face Federal Reserve scrutiny, as outlined in the regulators proposed rules to strengthen its oversight of large banks and other "systemically important" financial services companies.
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV