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Financial Stocks Fluttering: Bank of America Corp, American International Group Inc & JPMorgan Chase

Bank of America Corp (NYSE:BAC) is down slightly on the day, a little less than one percentage point, as news is continuing to circulate throughout the financial world that the U.S. Department of Justice will likely file charges against the banking giant.
The infractions likely come from 1-2 mortgage-related security sales, though no specificities were given. It is rumored that the SEC may be pondering a similar civil suit, which would be more bad news for a stock otherwise on its way up of late. Bank of America Corp (NYSE:BAC) has gained 14.8% in market value over the past 30 days, and is up 27.6% since the beginning of 2013. The $160 billion bank made headlines last month when it reported a year-over-year earnings jump of 70%.
American International Group Inc (NYSE:AIG), meanwhile, is trading in its usual spot among the volume leaders on Friday, as shares of the post-bailout package insurer are up 1.8%. Buttressing AIG higher is the company’s plans announced today that it will initiate a repurchase program worth as much as $1 billion, while paying 10 cents/share in dividends.
The dividend outlay marks the first time the insurer has paid a dividend since the onset of the financial crisis in 2008. Many value investors still like holding this stock, as it trades at a PEG below 1.0 and a 30% discount to book value parity.
American International Group Inc (NYSE:AIG) also reported its Q2 2013 earnings, with an EPS of $1.12, a 16.6% gain year-over-year. Revenue was up 6.7% yoy and both top and bottom-line figures beat most analysts’ estimates.
The company’s CEO, Robert Benmosche, said today that it was also working on an IPO with Chinese investors for International Lease Finance Corp, the most valuable aircraft lessor in the world. The talks are behind schedule, but still a possibility, said the executive.
JPMorgan Chase & Co. (NYSE:JPM), another oft-discussed banking giant, is nearly flat on Friday with no recent news hitting the wires. Earlier this week, the bank said that it would pay a $410 million penalty to FERC for manipulating “money-losing power plants into powerful profit centers.” That’s heavy stuff for JP Morgan, but with nearly $100 billion in revenue each year, it represents just a drop in the proverbial bucket.
Last month, the bank reported Q2 earnings up 32% from the same quarter a year ago, although mortgage refinancing activity was a net negative. On the release, CEO Jamie Dimon (pictured above) said that JPMorgan Chase & Co. (NYSE:JPM) is “hopeful that, as jobs are added and confidence builds, the U.S. economy will strengthen over time.”
Disclosure: none

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