Shares of financial companies are higher with Bank of America (BAC) saying this morning that it will take a $2 billion charge against Q4 earnings to settle buyback claims on home loans sold to Fannie Mae and Freddie Mac. The bank also expects to take a $3 billion provision for repurchase obligations. Dollar Financial Corp. (DLLR) late Friday agreeing to buy Purpose U.K. Holdings Ltd. for about $195 million. The check-cashing chain said the deal “immediately” adds to earnings and that it plans to soon revise its 2011 forecast to include the acquired business. Torchmark Corp. (TMK) has completed its sale of United Investors Life Insurance unit to Protective Life Insurance (PL) for $343 million plus $305 million in United Investors assets that were distributed to another Torchmark subisidiary. The sale is expected to add between $250 million to $320 million in free cash flow during 2011, Torchmark said.
