Bank Of America Corporation · NYSE:BAC
Bank Of America — Bank of America Corp /De/ (Bac, Bac-Pb, Bac-Pe, Bac-Pk, Bac-Pl, Bac-Pm, Bac-Pn, Bac-Po, Bac-Pp, Bml-Pg, Bml-Ph, Bml-Pj, Bml-Pl) — Q2 2012 Earnings Presentation
6 slides from Bank Of America's earnings presentation, Jul 18, 2012
Slide 1: Basel 3 Update
SIFI (to be determined) Capital Conservation Buffer (2.5%) Regulatory Minimum (4.5%) Transition provisions under the proposed U.S. Basel 3 rules require a 3.5% minimum Tier 1 common capital ratio in 2013, increasing 50bps annually to 4.5% in 2015 A Capital Conservation Buffer of 62.5bps is introduce
Slide 2: Funding and Liquidity
Funding and Liquidity • Long-term debt down $53B while overall Global Excess Liquidity Sources declined only $28B – Long-term debt 2Q12 activity $34B parent company maturities including $24B related to the Temporary Liquidity Guarantee Program All TLGP debt has been repaid $5.5B liability manage
Slide 3: Legacy Assets & Servicing (within CRES)
Legacy Assets & Servicing (within CRES) 1 ____________________ 1 Effective January 1, 2012, servicing activities previously recorded in Home Loans were moved to Legacy Assets & Servicing, and results of MSR activities, including net hedge results, and goodwill were moved from Other to Legacy Assets
Slide 4: Representations and Warranties
Representations and Warranties 1 • FNMA’s repurchase requests, standards for rescission of repurchase requests and resolution processes continue to be inconsistent with their own past conduct and our interpretation of our contractual obligations. These developments have resulted in an increase in cl
Slide 5: Estimated Range of Possible Loss
• Does not include litigation reserves established • Estimated Range of Possible Loss (RPL) above accruals up to $5B for non-GSE exposures at June 30, 2012 • Exposures identified above relate to repurchase claims associated with purported representations and warranties breaches in RMBS transactions.
Slide 6: Representations and Warranties New Claim Trends
Representations and Warranties New Claim Trends 1 $ in millions 2Q11 3Q11 4Q11 1Q12 2Q12 Mix 2 Pre 2005 $214 $95 $77 $86 $117 2% 2005 441 668 751 516 619 12% 2006 780 925 1,400 2,302 3,768 38% 2007 1,784 1,493 2,168 1,382 2,752 36% 2008 398 451 331 264 412 7% Post 2008 162 164 126 193 545 5% New Cla