The decision by a The settlement removes a substantial source of uncertainty from BAC's remaining contingent liabilities, though future appeals are possible.
BAC is fully reserved for the
In a prior special report, we estimated that the remaining FHFA litigation losses for BAC could total between
The judge ruled that the 2011 settlement between investors, BAC and trustee
While the approval of the settlement is a positive for BAC, there is no impact on current ratings. Longer-term ratings momentum will be predicated on meaningful and sustained earnings improvement, capital ratios that compare more favorably with large bank peers and a continued wind-down of legacy litigation liabilities and impaired assets.
The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article can be accessed at fitchratings.com. All opinions expressed are those of Fitch Ratings.
((Comments on this story may be sent to firstname.lastname@example.org))
The decision by a
The settlement removes a substantial source of uncertainty from BAC's remaining contingent liabilities, though future appeals are possible.