MoneyGram International global payment services announced an underwritten secondary public offering of an aggregate of 9,250,000 shares of MoneyGram’s common stock by affiliates and co-investors of Thomas H. Lee Partners, L.P. and affiliates of Goldman, Sachs & Co. has been priced at $16.25 per share. The selling stockholders have also granted the underwriters a 30-day option to purchase up to an additional 1,387,500 shares of common stock. MoneyGram will not receive any proceeds from the proposed offering. The offering is expected to close on November 23, 2011, subject to the satisfaction of applicable closing conditions.
Signature Bank announced its management plans to present its corporate story at the upcoming Bank of America Merrill Lynch Banking and Financial Services Conference. Designed to showcase publicly traded financial services companies for institutional investors, the Conference is scheduled for November 15 -16 in New York City. Signature Bank’s President and Chief Executive Officer Joseph J. DePaolo is scheduled to present on Tuesday, November 15, 2011 at 9:50 a.m. local time. The presentation will address the Bank’s operations and strategy.
The chairman and chief executive officer of Discover is set to present at the Bank of America Merrill Lynch Banking & Financial Services Conference in New York on Nov. 16. Presentation slides and a link to the live audio webcast will be posted on the day of the conference to Discover’s corporate website at www.investorrelations.discoverfinancial.com.
Under the pressure of criticism and response to customer feedback, Bank of America no longer intends to implement a $5 monthly debit usage fee. Concerned with the debit usage fee, customers’ voices sounded a collective “NO!” Subsequently, the Bank will not be moving forward with any additional plans to implement the fee.
In response to Bank of America’s announcement it will impose a $5 monthly fee on debit card users, The National Retail Federation issued a statement expressing displeasure. In a statement, targeting all banks set to implement this practice, the NRF disclosed “Every time Congress takes a step to protect consumers, the banks use it as an excuse to raise fees. We’ve seen it when Congress limited late fees and overdraft fees and now we’re seeing it with swipe fees. Just as merchants and consumers are about to get some relief, they’re doing it again. That doesn’t mean Congress shouldn’t pass consumer protection laws. It speaks more to the nature of the card industry than to whether swipe fee reform should have been passed.” In the United States, NRF represents an industry that includes more than 3.6 million establishments and which directly and indirectly accounts for 42 million jobs.
Bank of America, the Official Bank of the San Fransisco Giants, launched an integrated marketing program that ties the game’s ultimate defensive play with the new “BankAmericard Cash Rewards” credit card. Automatically rewarding customers with 1 percent, 2 percent and up to 3 percent cash back on their most common purchases, the new card is in response to customer requests for a program that rewards consumers for the spending categories they use most, such as gas and groceries. It rewards customers automatically earn 1% cash back on all purchases, 2% cash back on grocery store purchases, and 3% on gas station purchases. Customers earn the 2 percent and 3 percent cash back on gas and grocery purchases on the first $1,500 they spend in those combined categories per quarter. After that, they continue to earn one percent on purchases.
The Bank of America Charitable Foundation announced a $250,000 commitment to support the American Red Cross Disaster Fund for the 2011 hurricane season. This is now underway with relief response to Hurricane Irene that impacted states from North Carolina to New England. In addition, the Bank of America Charitable Foundation will match employee donations to relief efforts through the bank’s Matching Gifts program.
Bank of America Corporation agreed to sell approximately 13.1 billion common shares of China Construction Bank Corporation (CCB) in a private transaction with a group of investors, expected to generate approximately $8.3 billion in cash proceeds. After completion, Bank of America will hold approximately 5% of CCB and would remove the significant investment in financial institutions deduction from the company’s Tier 1 common capital under Basel III associated with this CCB stake.
The organizers of a national boycott against Bank of America Corp, that has been ongoing since February of 2007 in response to BofA’s plan to offer credit cards to illegal aliens, has offered to end the boycott if BofA will end the credit card program. Over 132,000 Americans have signed the boycott online petition found at http://www.bankofamericaboycott.com/ to “demand that all companies and corporations operating within the territory of the USA cease and desist any financial or political support for illegal aliens.” It is a violation of federal law to aid and abet illegal aliens inside the United States and numerous certified polls show that over 80% of Americans oppose benefits knowingly offered to illegal aliens. Reportedly, Bank of America is experiencing financial woes and the group is offering to publicly drop the boycott efforts if the bank will publicly ends their program designed to issue credit cards and mortgages to illegal immigrants.
Bank of America has agreed to sell its $8.6 billion Canadian credit card business to TD Bank Group and that it will exit its credit card businesses in the U.K. and Ireland. This continues the transformation of Bank of America’s credit card business, following the sale of the U.K. Business Lending portfolio, the agreement to sell the Spanish card business, and the company’s continued exit from the depository institution affinity credit card business with the recent sales of the Regions and Sovereign credit card portfolios. The U.K. and Ireland card folios have $19 billion in credit card loans and more than 4,000 employees.
Bank of America Corporation reported a net loss of $8.8 billion for 2Q/11, compared with net income of $3.1 billion the year-ago period while net income was $3.7 billion. Meanwhile, total purchase volume on consumer debit and credit cards was up 9% from the previous quarter and 6% from the year ago period. The number…
Khang & Khang LLP announces that a class action has been filed in federal court against Bank of America Corporation related to the Company’s Credit Protection Plus service. CPP is a program available to credit card holders that charges them roughly 1% of their credit card balance in exchange for allowing them, under certain circumstances, to defer their monthly minimum credit card payment obligations. The complaint alleges that Bank of America is engaging in unfair and deceptive trade practices in connection with the sale and administration of CPP and the bank allegedly enrolls card members-sometimes without consumer consent- into CPP without first determining whether the consumer is qualified to ever receive benefits under the Plan. The result is that card members are paying fees even though they can never receive benefits.