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Jun. 17, 2015, 11:30 AM
- While the OCC lifted consent orders against Bank of America (NYSE:BAC), Citibank (NYSE:C), and PNC Financial (NYSE:PNC) after finding unsafe and unsound mortgage-servicing and foreclosure practices back in 2011, Wells Fargo (NYSE:WFC) is part of a group facing new restrictions.
- Among other items, report Deon Roberts and Rick Rothacker, Wells Fargo is banned from entering new contacts to perform mortgage servicing for other lenders. The bank may still make and service new mortgages.
- OCC Deputy Controller Morris Morgan expects corrections from the group to be made in months, not years. “We have reserved the ability to take additional action against the six, and we plan to do so based on how quickly and effectively they remediate the remaining actions."
- The other five: JPMorgan (NYSE:JPM), HSBC Bank USA (NYSE:HSBC), Santander Bank (NYSE:SAN), U.S. Bank (NYSE:USB), and EverBank (NYSE:EVER)
Jun. 16, 2015, 8:22 AM
- FQ2 (ending May 31) fixed-income net revenue at Jefferies (NYSE:LUK) jumped 56% from a slow Q1, but fell 29% from a year ago. Total net revenue of $792M climbed 9.4% Y/Y.
- CEO Richard Handler notes fixed-income results improved each month during the quarter.
- Jefferies results often provide clues about how larger rivals like JPMorgan (NYSE:JPM), Citigroup (NYSE:C), and Goldman Sachs (NYSE:GS) may fare when they report their Q2s next month.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Jun. 10, 2015, 10:01 AM
- More than six years after the bottom, only four of the globe's biggest banks sport stock prices trading at a premium to book value. Leading the way is UBS at about 1.4x book. Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS) also trade for north of book.
- Deutsche Bank (NYSE:DB) - whose ROE of 2% is about one-tenth of what it was pre-crisis - brings up the rear at just about 0.5% of book. Barclays (NYSE:BCS) sells for roughly 0.7x book, and Bank of America (NYSE:BAC) only slightly more than that.
- Checking further on ROE, Goldman leads the way at about 12%. Citigroup (NYSE:C) is less than 5%, but stands out as being the only bank with a higher ROE today than before the crisis.
- Looking at total return since the crisis, Goldman again leads the way at about 170%, with Morgan Stanley and JPMorgan a close second/third. Citigroup is the only major bank with a negative total return over that time frame.
- Source: Bloomberg
Jun. 5, 2015, 10:27 AM
- This morning's strong nonfarm payroll report may put to rest the idea of a continuing economic slowdown and puts on the table a rate hike maybe as soon as September.
- The 10-year Treasury yield is up nine basis points to 2.40%.
- The KRE +1.5%, KBE +1.6%, and the XLF +1.1% amid a flat S&P 500.
- Regional banks: Regions Financial (RF +3.3%), KeyCorp (KEY +2.5%), PNC Financial (PNC +1.9%), SunTrust (STI +2.3%), U.S. Bancorp (USB +2.2%), Zions (ZION +3.7%), First Niagara (FNFG +1.4%)
- Too Big Too Fails: Citigroup (C +2.2%), Bank of America (BAC +3.4%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.9%)
- Life insurers: MetLife (MET +2.7%), Prudential (PRU +2.8%), Sun Life (SLF +1.9%), Lincoln Financial (LNC +2.5%)
- Online brokerage: Schwab (SCHW +3.8%), TD Ameritrade (AMTD +2.8%), E*Trade (ETFC +2.3%), Interactive Brokers (IBKR +2.5%)
- Previously: Jobs up 280K in May; UE rate ticks higher (June 5)
- Previously: Treasury yields surge amid strong job gains, boosted wage growth (June 5)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, FINZ, KRS
Jun. 1, 2015, 8:03 AM
Jun. 1, 2015, 6:48 AM
- Citigroup (NYSE:C) is expected to close its Banamex USA unit after government authorities began probes of possible violations of anti-money laundering laws, sources told WSJ.
- Regulators aren’t demanding that Citigroup close the unit, but they want Banamex USA to pay more than $100M to settle the allegations.
- A closure would mark the latest retreat by a big bank from businesses that move money in and out of emerging markets where money laundering is seen as an elevated risk.
May 28, 2015, 2:30 AM
- The world's most popular sport was plunged into turmoil on Wednesday as U.S. authorities announced charges against nine FIFA officials and five sports executives, alleging they were part of a scheme in which more than $150M in bribes were paid in exchange for the commercial rights to soccer tournaments.
- The bribes were reportedly paid using accounts at major global banks, raising the prospect that Wall Street could be in the spotlight again over its involvement in yet another scandal. Banks involved: JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, BofA (NYSE:BAC), UBS and Julius Baer (OTCPK:JBAXY).
- Nike, which also might be in the hot seat, said it would cooperate with authorities.
May 22, 2015, 4:00 PM
- Citigroup's (NYSE:C) consumer-banking units in Costa Rica and Panama could go for about $1.1B, according to a Bloomberg source.
- A sale - and Scotiabank (NYSE:BNS) is still conducting due diligence - would be the second such deal between the two lenders in six months. Scotiabank agreed in December to buy Citi's Peru operations (it closed this month).
- Citi and Spain's Banco Popular earlier this year broke off talks for a sale of all of Citi's Central American retail businesses.
- Scotiabank operates in more than 55 countries in LatAm, the Caribbean, and Asia, and has targeted spots like Mexico, Colombia, Chile, and Peru as those offering the best opportunities for growth.
- Source: Bloomberg
May 21, 2015, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
May 20, 2015, 10:10 AM
- Those facing criminal charges from the DOJ are UBS (already reported, the stock is up 3.4% today), Barclays (BCS +2.5%), Citigroup (C -0.5%), JPMorgan (JPM -0.4%), and RBS (RBS +1.6%).
- Bank of America (BAC -0.4%) faces a $205M fine by the Fed, but no criminal charges. Fines by the Fed for the other banks range from $274M-$342M.
- There are fines from other regulators as well, with the total for all the banks summing to $5.8B. Barclays looks to be hit the hardest on that front, with total monetary penalties of $2.4B.
May 19, 2015, 3:13 AM
- In yet another turn of events, Argentina has now barred Citibank (NYSE:C) Argentina from exiting its role as custodian of some Argentine sovereign bonds while a row with U.S. creditors over unpaid debt rages on.
- The country has already suspended the bank from capital market operations and stripped its chief executive officer of his authority.
- Previously: Citi-Argentina relations plumb new low (Apr. 08 2015)
- Previously: Argentina bans Citi from capital market operations (Mar. 29 2015)
May 14, 2015, 8:04 AM
- The Alternative Credit Program" has been around since 2007, and allowed a group of select bank clients to make big bets on currency markets without submitting to Citigroup's (NYSE:C) normal risk-management procedures.
- Roughly 40 were signed up to ACP - hedge funds and family offices for the most part - and were fast-tracked through a less-intensive version of Citi's normal credit checks.
- The bank, however, decided to cancel the program after January's Swiss franc revaluation which hit Citi with about $150M in losses.
- Source: WSJ
May 14, 2015, 7:55 AM
- "Guilty" is the new "neither admitting nor denying the charges."
- Yes, the DOJ looks set to extract guilty pleas on felony charges from five big banks over forex rigging, but life will go on for the lenders without much of a hiccup (after paying billions in fines), according to DealBook.
- Barclays (NYSE:BCS), JPMorgan (NYSE:JPM), Citigroup (NYSE:C), RBS, and UBS are the five whose holding companies will plead guilty, according to the report.
- While the guilty pleas are a nice feather in the caps of prosecutors, they seem to me more symbol than substance - too harsh a penalty would imperil banking operations, and behind the scenes, bank lawyers are working the phones with regulators to assure the felons won't be barred from certain businesses.
May 11, 2015, 10:28 AM
- In what might have been a death knell to a bank in years past, but now looks to be just another cost of doing business in a post-crisis world, Citigroup (C +0.1%) - in its quarterly report - confirms the idea it could plead guilty to an antitrust charge as part of a settlement over forex rigging charges.
- The WSJ last week reported Citi, along with Barclays JPMorgan, and RBS are expected to plead guilty and pay billions over forex charges.
- The DOJ, however, has dropped its investigation of Citi over Libor-rigging, says the bank.
May 8, 2015, 8:03 AM
- Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM), along with Citigroup (NYSE:C) and Synchrony Financial (NYSE:SYF) are being sued for their charming practice of using fancy footwork to keep debts alive on consumers' credit reports after those debts have been legally eliminated in bankruptcy.
- Both BofA and JPMorgan have agreed to update borrowers' credit reports within the next three months to reflect the fact that those debts are no longer there. Last year Synchrony agreed to a similar move at least on a temporary basis.
May 1, 2015, 3:05 AM
- More than seven years after the global financial collapse, regulators and investors are still working through a mile-high pile of lawsuits and other civil actions, and it seems like the fines keep on coming.
- Since the crisis, banks and other institutions have paid more than $150B in fines, settlements and other penalties, according to a tally by FT. That compares with the roughly $700B in profits generated by U.S. banks between 2007 and 2014.
- So where have all the payments gone? The biggest have landed in the Justice Department, which has collected some $50B. Other heavy collectors include the FHFA, Fannie Mae, HUD and the SEC.
- Among the banks paying the biggest amounts, BofA (NYSE:BAC) tops the list - with nearly $58B, followed by JPMorgan (NYSE:JPM) ($31.3B), Citigroup (NYSE:C) ($12.8B) and Wells Fargo (NYSE:WFC) ($9.7B).
Citigroup Inc is a financial services holding company. It provides financial products and services, including consumer banking, credit cards, corporate and investment banking, securities brokerage and wealth management.
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