Bank of America Corp (NYSE:BAC) Moves Around Executive Team Amidst Fed Taper Moves

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Dallas, Texas 12/19/2013 (FINANCIALSTRENDS) – Bank of America Corp (NYSE:BAC) is an $167.62 billion market capped bank in U.S. Till the 2008 financial crisis hit the U.S and global financial sector in the gut and made them stutter, this banking stock was considered too big to fail and  hence was treated with kid glows by the investment and the regulatory communities.  All that changed forever when some of the most storied names in the U.S banking industry had to eat their pride and stand hat in hand in front of U.S federal government seeking bailout packages.

Fed Initiates Taper Move

Since then the federal stimulus package which amounted to about $85 billion being spent by the government to prop up the recovering bond markets and the wider economy. All that seems to be changing with yesterday’s decision by Fed to initiate a gradual withdrawal of the stimulus by a $10 billion starting yesterday. With this decision banking stocks like Bank of America Corp (NYSE:BAC) are expected to rally upwards as this decision by Fed means a more profitable interest regime in which banks can make some profits by lending money to businesses.

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Bank Of America Regigs Executive Team

In a related development it was announced couple of days back that Bank of America Corp (NYSE:BAC) has decided to ring in changes at its executive management level keeping in mind the changes that are likely to occur in the market dynamics post tapering move initiation by Fed.  As per the latest org change, Michael J. Lynch who headed the banks American equity sales unit has been moved out to accommodate Miceal Chamberlain and Edouard Matitia-Cohen. Mr Lynch has been in turn accommodated in the bank’s global markets senior relationship management team.

These changes are also being explained in the back drop of the fierce completion between that Bank of America Corp (NYSE:BAC) and Goldman Sachs Group Inc. and Morgan Stanley for a larger share of the bountiful equities markets in U.S. Last year Bank of America Corp (NYSE:BAC) had posted net revenue in the region of $3.5 billion from its equities and markets division.

In Related News

Bank of America Corp (NYSE:BAC) has also tried to keep its preferred share holders happy by getting its board to declare a dividend payout schedule to its Series L share holders. As per the timetable announced, the bank will be paying out cash dividend of $18.125 per share of “Non-Cumulative Perpetual Convertible Preferred Stock, Series L” to each share holder. This dividend will be paid out on January 30 to all those share holders who are on record as of January 1, 2014.

Stock Market Performace

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This banking stock has been able to show appreciation in is market value over the past one year. It has managed to post a 38 percent increase in its market value during trading over the trailing 12 months and this growth remains impressive even when one considers the 6 months time period. It has shown a spike in its value by 22 percent in the past 180 days. At this appreciated price range, the stock is trading at just 1.75 percent below its prior 52 week high price points. When trading was suspended for the day yesterday, the stock had risen by a 3.36 percent from its previous day close.

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