Bank of America Merrill Lynch

Following moves by Goldman Sachs and JP Morgan to give junior bankers 36 hours off each weekend and one whole weekend off a month, respectively, Bank of America has announced that its young worker bees should go ahead and think about taking a couple Saturdays or Sundays off every now and again. Read more »

The Kansas City Fed chief wants the son of a bitch at Merrill Lynch who spoiled the secrecy surrounding her underwhelming ski-vacation-and-symposium caught before he finds his way to Moscow or Ecuador. Read more »

A brief follow-up. Read more »

  • 08 May 2013 at 2:54 PM

It’s Okay That Chesapeake Forgot To Call Some Bonds

Well this isn’t great:

The story behind that – more fully described here – is that Chesapeake issued $1.3 billion of seven-year bonds in February 2012, and those bonds were freely callable from November 2012 to March 2013, and thereafter not callable (except with a T+50 makewhole) until maturity. And in March Chesapeake tried to call them, and their trustee – BoNY Mellon – said, well, no, you needed to give notice of a call a month in advance, everyone knows that, so you’re outta luck and can’t call them except at the makewhole price (~129). And Chesapeake disagreed and so they sued. The dispute turned on some ambiguous language – some places the bond documents said you need to provide notice a month before you call, other places they say that the early call works as long as you provide notice before March 2013 – but I wasn’t particularly sympathetic to Chesapeake, based mostly on market-practice-y reasons, and gave them about 25% odds of winning.

I was wrong!1 Today Chesapeake won its lawsuit and so will be redeeming those bonds at par. To be fair The Market was wrong too, as the bonds were trading at 108ish (5.25%-ish), wider than Chesapeake’s non-callable bonds but still well north of the 100 that you’re now going to get for them. Read more »

Bank of America Corp. co-Chief Operating Officer Thomas K. Montag received a 21 percent raise to $14.5 million for 2012, topping his boss Brian T. Moynihan for the third straight year. Montag, 56, got a $5.46 million cash bonus for 2012, $8.19 million in restricted stock units and an $850,000 base salary, the Charlotte, North Carolina-based lender said today in a regulatory filing. That compares with the $12 million awarded to Moynihan, 53, giving the chief executive officer a raise of more than 70 percent from 2011. “This says to everybody that Brian is OK with Tom getting a superior compensation; Montag is doing a great job in a business that’s very tough right now,” said Jeanne Branthover, managing director at Boyden Global Executive Search Ltd. in New York [Bloomberg, earlier]

Brian T. Moynihan, who endured record losses and public thrashings while cleaning up Bank of America Corp.’s mortgage mess, said he wouldn’t mind being chief executive officer of the lender forever. “It’s the best job there is,” Moynihan said yesterday in an interview scheduled for public television’s “Charlie Rose” program. “While there have been times when you sit there and say, ‘Jeez, this is a lot of pounding,’ you always keep your eye on the purpose you’re here. And that’s to help people with their financial lives — if you really keep focused on that, I could do this the rest of my life.” [Bloomberg]

  • 20 Mar 2013 at 11:45 AM

Layoffs Watch ’13: Bank Of America

Cuts are said to have gone down at the House ‘o Moynihan. Read more »