BofA Agrees To Pay "X Times" Reserved, Stock Rises

In one of the most-ridiculous moves today, we have BAC, which is up some 3% this morning on the following news:

Bank of America Corp. (BAC), the biggest U.S. bank, agreed to pay $8.5 billion to resolve claims over soured mortgages after bondholders including BlackRock Inc. (BLK) demanded refunds. The company rose as much as 6.7 percent in New York trading. The settlement will contribute to a second-quarter loss of $8.6 billion to $9.1 billion, or 88 cents to 93 cents a share, the Charlotte, North Carolina-based bank said today in a statement.

That, incidentally, is because the company has settled at a monstrous multiple to what it told the market were required reserves against these risks.... Continue reading here.