CHARLOTTE, N.C. - seizures and changes in the real estate took center stage at the annual meeting of the Bank of America Corp. on Wednesday.
Outside of the headquarters of the largest bank of the nation, protesters held signs and gave evidence on their own experiences of foreclosure. At the meeting, held in new 32 floors the Bank located adjacent to its headquarters, confronted shareholders CEO Brian Moynihan on the woes of the mortgage in their communities.
Rev. Clyde Ellis, a pastor from Virginia, said that Bank of America should take responsibility for its role in the foreclosure crisis. Ellis invited Moynihan to visit the County of Prince William in Virginia to see seizures damage caused, including families who have lost homes and empty houses.
"Come to Prince William County and I'll show disaster, said Ellis.
Losses and litigation related to seizures and poorly written mortgage haunt Bank of America for several neighbourhoods. In its most recent quarter, income of the Bank dropped 39 percent higher costs related to mortgage loans and legal costs. At the end of the first quarter, the Bank had properties seized $ 2 billion on his book, and its clients are late in 90 days, or 24 billion of its total loans morewhich included residential and commercial properties.
Moynihan has attempted to separate the rest of the business of the Bank of his misadventures of mortgage. In his speech to the shareholders at the beginning of the meeting, he described the company as being composed of two floors, with the company of the mortgage on one side and all its other business of the other units.
"Power of the franchise is retained by the mortgage challenges we face," he said.
Shares of the Bank are one of the worst performers of the S & P 500 index this year. Recently, the stock slid after the Federal Reserve has rejected the plan capital of the Bank and its application for an increase in the dividend.
BofA was the only bank among four of the country more bulk who is not a test of stress in the Fed. The Central Bank examined the 19 largest banks in the country if they were strong enough to withstand another economic crisis. Bank of America will submit a revised plan later this year.
Moynihan, said that the Bank will pay dividends once it resolves many of the problems of its mortgage and submits a plan that is acceptable to regulators.
Some shareholders want the Bank itself look more closely. Michael Garland, who represented several large public pension funds, the meeting said that he had written to the Audit Committee of Bank of America seeking to conduct an independent review of mortgages and foreclosures to show that they conform to the laws.
Garland said that other banks audit committees responded shortly after he sent a similar letter in January. He is disappointed that no there was no response from the Audit Committee of Bank of America until five days before the annual meeting.
"If this is your answer to shareholders with a stake of $ 1.3 billion in the business, I can only imagine how you treat your residential mortgage customers," said Garland, who also represented the Office of the Comptroller of the city of New Yorkwhich oversees public pension funds in New York. The Comptroller of New York had put forward a proposal for the shareholders of the Bank to conduct an independent review. Plan are not enough votes to pass on Wednesday.
The annual shareholders ' meeting was held in an auditorium brand-new with red velvet in turn 32 seats floors, Bank of America, which opened last year.
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