Midday movers: Bank of America, Boeing, SolarCity

Stocks are lower, pushing the S&P 500 off the five-year high it reached Friday.

By MSN Money Partner Jan 7, 2013 2:33PM
Wall Street sign copyright Corbis, SuperStockInformation provided by Theflyonthewall.com

Bank of America (BAC) announced it will repurchase $6.75 billion worth of residential mortgage loans it sold to Fannie Mae and will pay $3.6 billion to settle claims related to certain residential mortgage loans. 

Bank of America also agreed to sell the servicing rights on about 2 million residential mortgages with unpaid principal balances of approximately $306 billion to Nationstar Mortgage Holdings (NSM) and Walter Investment (WAC).

Separately from BofA's settlement with Fannie Mae, the Federal Reserve and the Office of the Comptroller of the Currency reached an agreement under which 10 mortgage servicing companies will pay more than $8.5 billion in cash payments and other assistance to mortgage borrowers to settle claims of deficient practices in loan servicing and foreclosure processing. 

The regulators listed Bank of America, Citibank (C), JPMorgan Chase (JPM), MetLife Bank (MET), PNC (PNC), SunTrust (STI), U.S. Bank (USB) and Wells Fargo (WFC) among those participating, but did not spell out the level of compensation to be paid by each.

In other banking news, the Basel Committee on Banking Supervision made it easier for banks to meet the new "liquidity coverage ratio" rule and delayed its full implementation until 2019.

Shares of airplane maker Boeing (BA) declined 3% in midday trading following media reports of a fire in a 787 Dreamliner parked at Boston's Logan International Airport. 

Among the notable market gainers Monday were Epocrates (EPOC), up over 21% after agreeing to be acquired by athenahealth (ATHN) for $11.75 per share in cash, and SolarCity (SCTY), which rose more than 10% after a number of research firms began covering the stock with "buy" ratings. Also higher were shares of Peregrine Pharmaceuticals (PPHM), which advanced 72% after the company updated on its internal review of one of clinical trials and Roth Capital upgraded the stock to a "buy." 

Among the noteworthy losers was ITT Educational (ESI), which fell nearly 17% after reporting Friday night that it has entered into a settlement agreement and release with Sallie Mae and Credit Suisse lowered its price target on the stock in a note to investors this morning. 

Also lower were shares of Achillion (ACHN), down over 9% after reporting interim results on a trial of its treatment for a type of hepatitis C virus infection. 


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