Company Update (NYSE:BAC): Bank of America Corp Tightens Compliance Processes, including Collections, Across Businesses
Bank of America Corp (NYSE:BAC) entered into a consent order with the Office of the Comptroller of the Currency (OCC) in which it agreed to continue to make improvements to its compliance practices, specifically enhancing its non-home loan collections litigation and Servicemembers’ Civil Relief Act (SCRA) processes as well as its enterprise compliance program.
The order covers collections litigation from several years ago for a small percentage of credit card and deposit overdraft customers who defaulted on their account, and also covers SCRA account servicing. The issues were discovered by reviews that began in 2011; since that time, Bank of America enhanced its collections litigation and sworn documents processes and enhanced controls around SCRA across the company. In addition, Bank of America is building upon a number of initiatives already underway to better manage compliance risk going forward.
“We have taken significant steps over the last several years, and will take further steps now, to ensure we have the right controls and processes in place to meet – and exceed – what is required by law and what our customers deserve and expect,” said Andrew Plepler, Bank of America Global Corporate Social Responsibility and Consumer Policy Executive. (Original Source)
Shares of Bank of America opened today at $16.66 and are currently trading down at $16.53. BAC has a 1-year high of $18.21 and a 1-year low of $14.84. The stock’s 50-day moving average is $16.14 and its 200-day moving average is $16.37.
On the ratings front, BAC has been the subject of a number of recent research reports. In a report released yesterday, Portales Partners LLC analyst Charles Peabody downgraded BAC to Hold. Separately, on May 19, Deutsche Bank’s Matt O’Connor maintained a Buy rating on the stock and has a price target of $18.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Charles Peabody and Matt O’Connor have a total average return of 8.5% and 4.2% respectively. Peabody has a success rate of 50.0% and is ranked #2548 out of 3610 analysts, while O’Connor has a success rate of 73.8% and is ranked #1171.
The street is mostly Bullish on BAC stock. Out of 7 analysts who cover the stock, 4 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $19.33, which implies an upside of 16.0% from current levels.