Treasuries dropped on concern the biggest monthly surge in yields since December will prompt investors to sell government debt as a hedge against losses on mortgage bonds as borrowing costs climb to a 14-month high.

Borrowers should be ready for higher interest rates, as "rates are going to go up" JPMorgan Chase Chairman and CEO said at a financial services conference hosted by Morgan Stanley on Tuesday.

Putting aside questions of whether or not the Bank of America can successfully win judicial approval for the $8.5 billion settlement that it entered into with the Bank of New York Mellon, investors considering whether or not BoA stock belongs in their portfolio or not should ask themselves only, are the bank's fundamentals solid?

The $1.2 trillion of mortgage-backed securities the Federal Reserve has amassed to stoke economic growth is creating a potential firewall that dealers say is shielding the bond market from a rapid decline as policy makers debate scaling back debt purchases.

Whether it comes to being, in general, the most scorned of all banks, or the worst possible mortgage lender in particular,Bank of America usually wins -- if you can call it that -- handily.

Non-bank mortgage services are drawing the scrutiny of regulators and finance giants Fannie Mae and Freddie Mac, who want to avoid a repeat of the housing crisis, Reuters reported.
 

A partner at Quinn Emanuel Urquhart & Sullivan, Daniel Brockett recently filed a Libor case with a twist: a fraud case against banks that set the benchmark rate brought by hedge funds that did Libor-pegged trades with the banks.

Negotiations that led to an $8.5 billion mortgage-bond settlement between Bank of America Corp. (BAC) and institutional investors were tense and combative, the bank’s chief risk officer testified.