Shares of Bank of America Corp (NYSE:BAC) ended Thursday session in green amid volatile trading. The shares closed up +0.16 points or 1.02% at $15.86 with 69.29 million shares getting traded. Post opening the session at $15.77, the shares hit an intraday low of $15.68 and an intraday high of $15.94 and the price vacillated in this range throughout the day. The company has a market cap of $161.03 billion and the numbers of outstanding shares have been calculated to be 10.20 billion shares.
On September 9, 2016 Former Merrill Lynch advisers who were fired after Bank of America merged with the brokerage in 2008 won back some of the deferred compensation on which they had missed out, according to a settlement filed this week in a North Carolina district court.
Bank of America agreed to pay $12.8 million to settle claims made by more than 270 former employees that the bank failed to follow proper procedures after terminating them. The ex-employees held that the procedures would have allowed them to argue they deserved to leave the firm with some of their deferred compensation that was not yet paid out.
Many Wall Street brokerages offer bonuses and other compensation in the form of deferred cash, seeing it as a way to delay immediate payouts and to lock in employees who might be tempted to jump to rival firms.
A Bank of America spokesman declined to comment. As part of the settlement, the bank and Merrill Lynch did not admit or concede to any of the allegations made by the former advisers.
The settlement amounts will total nearly $47,000 for each former employee. The lawyer who represented the former employees, Michael Taaffe, called it a significant win for brokers’ protection in an era when mergers are common.
“If they were terminated for cause, the bank had to allow them opportunity to present their side of the story to make sure that the termination was appropriate and not because the bank wanted to keep their deferred compensation,” said Taaffe, a partner at Shumaker, Loop & Kendrick in Florida.
Shares of Itau Unibanco Holding SA (ADR) (NYSE:ITUB) ended Thursday session in red amid volatile trading. The shares closed down -0.04 points or -0.35% at $11.41 with 20.29 million shares getting traded. Post opening the session at $11.56, the shares hit an intraday low of $11.36 and an intraday high of $11.58 and the price vacillated in this range throughout the day. The company has a market cap of $62.21 billion and the numbers of outstanding shares have been calculated to be 2.88 billion shares.
Itau Unibanco Holding SA (ADR) (ITUB) provides a range of financial products and services to individuals and corporate clients in Brazil and internationally. The company operates in three segments: Retail Banking, Wholesale Banking, and Activities with the Market + Corporation. It accepts time, savings, and demand deposits; and offers personal, payroll, vehicle, and mortgage loans, as well as credit cards. The company also provides asset management, custody and bookkeeping, consortium, investment banking, and electronic payment means services, as well as private banking services.