Bank of America still faces problems

Bank of America still faces problems

new york

Bank of America’s $8.5 billion settlement with investors is the largest any bank has ever paid.

It might help assuage worries about how deep the bank’s mortgage problems might be and how long it might take to settle them. But for the nation’s largest bank and its CEO Brian Moynihan, the slate is far from clean.

The payout settles claims by just 22 investors who said Bank of America Corp. sold bonds based on substandard home mortgages. The bonds fell in value when the housing market collapsed and left the investors with losses on $424 billion worth of mortgages. The $8.5 billion settlement eclipses the last three years of earnings at the Charlotte, N.C. bank.

US recall by Toyota

tokyo

Toyota Motor Corp. said Wednesday it will recall about 82,200 hybrid SUVs in the U.S. because of computer boards with possible faulty wiring.

The car giant said the recall will involve Highlander and Lexus brand hybrid SUVs from its 2006 and 2007 lines. The action covers just the vehicles sold in the U.S., with no other models affected.

Wednesday’s recall involves about 45,500 Highlander Hybrid and 36,700 Lexus Rx 400h vehicles, the company’s U.S. subsidiary said in a press release.

Wal-Mart Stores will cut gas prices

bentonville, ark.

Wal-Mart Stores Inc. is cutting gas prices in Ohio and 17 other states by 10 cents a gallon for three months.

The world’s biggest retailer says customers visiting participating Murphy USA and Walmart gas stations from Wednesday through Sept. 30 will receive the discount on all fuel, gas and diesel purchases when they use a reloadable Walmart gift card, Walmart MoneyCard or a Walmart credit card.

Ohio gas prices topped $4 a gallon earlier this spring but have since fallen to an average $3.35 for regular, according to AAA.

Vindicator wire reports

Selected local stocks

STOCK, DIVIDENDCLOSECHANGE

Aqua America, .62, 21.945 .24

Avalon Holdings,2.7499—.02

Clear Channel, .63 57.97 .62

Cortland Bancorp, 7.00.00

Farmers Nat., .12, 4.81 .01

First Energy, 2.20, 44.01.53

FirstMerit Corp., .64,16.56 .20

First Niles Financial, .32,7.17.00

First Place Fin., 1.21.00

FNB Corp., .48,10.38.06

General Motors,30.35—.15

General Electric, .60,18.61.17

Motors Liquidation, .0422.00

Huntington Bank, .04, 6.54.15

JP Morgan Chase, 1.00,40.551.01

Key Corp, .12,8.295.19

LaFarge, 15.22 .56

Macy’s, .40, 28.795.07

Parker Hannifin, 1.48, 87.0035.11

PNC, 1.40,59.041.13

RTI Intl. Metals,37.801.43

Rural/Metro, 17.25 .01

Simon Prop. Grp.,3.20,115.781.74

Stoneridge 14.78 .50

United Community Fin. 1.24.07

Selected prices at 4 p.m. Wednesday. Provided by Stifel Nicolaus. Not to be construed as an offer or recommendation to buy or sell any security.