Fri, Oct. 9, 8:03 AM| Fri, Oct. 9, 8:03 AM | 1 Comment
Thu, Oct. 8, 4:10 PM
- Wells Fargo (NYSE:WFC) is the country's second-largest private student loan originator and services all of its private loans, so it should be no surprise the Consumer Financial Protection Bureau - which has been busy probing student loan servicers - has been investigating Wells since at least last year. reports the WSJ.
- The exact issues aren't known, but the CFPB typically focuses on payment processing and what steps lenders are taking to help out distressed borrowers.
- Discover - the 3rd largest private student loan originator - settled with the CFPB in July, and Citigroup in August said it was facing an investigation.
- Navient (NASDAQ:NAVI) - which was spun out of SLM Corp. last year - is also under probe by the CFPB as well as a number of state attorneys general.
Wed, Oct. 7, 8:33 AM
- A badly-burned Bank of America (NYSE:BAC) won't do it anymore, but JPMorgan (NYSE:JPM) - aiming to make up for slowing business in its mortgage operation - is increasingly buying loans from smaller lenders, writes Dan Freed for Reuters.
- In H1, the Bank of Dimon bought 62% of the $58B in residential mortgages added to its books, up from 56% in 2014 and 37% in 2011. According to Inside Mortgage Finance, JPMorgan has shown the biggest increase among peers in so-called correspondent lending.
- "As they gain more confidence about the environment, they go right back to the correspondent channel for more volume," says analyst Charles Peabody. "There's more risk in being that far away from the customer," says BofA's Steve Boland, who leads mortgage and auto lending. For its part, JPMorgan says it only works with "experienced, well-managed, and high quality lenders," and reviews every loan in detail.
- Wells Fargo's (NYSE:WFC) Eric Stoddard - who runs the bank's correspondent business - says it's cheaper to buy mortgages from other lenders than to make the loans itself.
- "I think Bank of America's (policy) is a little foolish," says lender Ken Perimutter, whose PERL expects to make about $1.6B in home loans this year, and sell about 60% of those to JPMorgan.
Thu, Oct. 1, 8:33 AM
Wed, Sep. 30, 7:45 PM
- General Electric (NYSE:GE) agrees to sell its railcar leasing business to Wells Fargo (NYSE:WFC), and sells its tank car fleet assets and railcar repair facilities to Marmon Holdings; terms of the deals are not disclosed.
- The deals dismantle what was General Electric Railcar Services, a $4B-asset business that leases freight and tank cars and offers loans and maintenance services, and adds to a series of GE divestitures as the company seeks to return to its industrial roots.
- WFC says the deal will make its First Union Rail division the second-largest railcar and locomotive lessor in North America, adding to its existing fleet of more than 77K cars and ~1K locomotives.
Thu, Sep. 17, 2:37 PM
- It'll be at least a little while longer until banks and insurers get the higher rates they are hoping will boost sluggish profits, as the Fed holds its fire this month.
- The "dots" however are still projecting at least one rate hike before year-end.
- The SPDR KBW Regional Banking ETF (KRE -1.4%), and the SPDR KBW Bank ETF (KBE -1.2%).
- BofA (BAC -1.7%), Wells Fargo (WFC -1.2%), Regions (RF -2%), KeyCorp (KEY -1.8%), BB&T (BBT -1.7%), Fifth Third (FITB -2.4%), MetLife (MET -2.2%), Prudential Financial (PRU -1.9%), Schwab (SCHW -2.2%), Ameritrade (AMTD -2%), E*&Trade (ETFC -1.2%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS
Mon, Sep. 14, 11:15 AM
- With market eyes on a Fed rate-hike decision considered to be a bit of a toss-up amid differing opinions, Goldman Sachs is banking on the (slightly) more dovish position that the agency will wait until December. The bank is still laying out how to play the hike when it invariably comes.
- Strength in balance sheets is what you need, it says, noting that those companies outperform (by an average 5%) in the three months after a rate-boosting cycle begins. In Goldman's "High Quality Stock" basket: CMG, DLTR, PEP, KMI, BLK, GOOG, AAPL, PCLN, ORCL, WFC.
- Meanwhile, it suggests avoiding companies with high floating-rate debt as they bear the brunt of a move away from near-zero interest rate policy. "When the tightening cycle finally starts, the immediate impact will be felt by firms with high proportions of variable rate borrowing."
- Included in that "avoid" list: CL, COL, JNJ, AAPL, EBAY, MET, KO, GIS, F, MCD, GM, TWX, CVX, AGN, MON.
- (Yes, cash-rich Apple made both lists, having a strong balance sheet along with floating debt.)
Mon, Sep. 14, 9:52 AM
- Wells Fargo (NYSE:WFC) has named Frank Pizzo president of its EMEA (Europe, Middle East, Africa) region, where he'll succeed Jim Johnston.
- Johnston will return to the U.S. at year's end, while Pizzo heads to London pending regulatory approval.
- Pizzo is currently head of the bank's Loan Syndications and High Yield Debt Capital Markets Group. He'll take over more than 1,000 employees in EMEA. Pizzo joined Wells Fargo in 1998.
Tue, Sep. 8, 7:53 AM
- Both Evercore ISI and Deutsche buy the dip in Wells Fargo (NYSE:WFC) with upgrades to Buy. Evercore's PT is $57 and Deutsche's is $60. WFC closed at $51.31 on Friday.
- Also helping is a sizable rally in U.S. stock index futures, with the S&P 500 currently higher by 1.7%.
- Shares +2.4% to $52.53 premarket.
- See also: Deutshce find three rough-up financials to Buy (Sept. 8)
Wed, Sep. 2, 9:05 AM
Tue, Sep. 1, 2:47 PM
- The dream of higher interest rates is looking a little fuzzier at the moment, as China leads markets lower again, and the Fed's Eric Rosengren suggests the conditions for a rate hike have still yet to be met. If Friday's payroll number disappoints - and there's at least some reason to expect that - a Sept. move looks off the table.
- The Financial SPDR (NYSEARCA:XLE) is down 3% vs. the S&P 500's 2.3%.
- Life insurers: MetLife (MET -3.7%), Prudential (PRU -3.9%), Lincoln National (LNC -4.2%)
- Money-center banks: Citigroup (C -4.4%), JPMorgan (JPM -3.6%), Wells Fargo (WFC -3.8%)
- Regional banks: U.S. Bancorp (USB -4.3%), Regions Financial (RF -4.1%), KeyCorp (KEY -4.3%), SunTrust (STI -4.2%), M&T Bank (MTB -4.2%)
- Online brokerage: E*Trade (ETFC -4.8%), Schwab (SCHW -3.8%), Ameritrade (AMTD -3.4%)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, FINZ, KRS
Tue, Sep. 1, 3:45 AM
- In a last-ditch effort to get repaid, RadioShack's (OTCPK:RSHCQ) junior creditors are suing hedge fund Standard General, the company's largest pre-bankruptcy shareholder and current owner.
- The lawsuit also names Wells Fargo (NYSE:WFC) and former Chief Executive Officer Joseph Magnacca, alleging they helped Standard General take over the company at creditors' expense.
Thu, Aug. 27, 11:57 PM
- Wells Fargo (NYSE:WFC) is the leader in the hunt to buy General Electric's (NYSE:GE) railcar financing unit, in a deal that could come by Labor Day, Bloomberg is reporting.
- Wells Fargo would outpace Sumitomo Mitsui Financial Group in that case.
- The sale is another step in GE's divestment of financial services in order to focus on core manufacturing.
- The railcar financing business has more than $4B in assets.
Thu, Aug. 27, 10:06 AM
- A rare growth business for Wall Street banks has been loans backed by investment portfolios, but with margin calls being issued this week, profits could take a hit if clients pull back from borrowing.
- Morgan Stanley (MS +1.6%) had $25.3B in securities-based loans outstanding as of June 30, up 37% year-over-year. Bank of America (BAC +0.2%) had $38.6B of the loans, up 14.2%. Wells Fargo (WFC +1.1%) had $59.3B, up 16%.
- The amounts are small compared to overall bank lending, but change comes at the margin, and the largest brokerage firms have reported higher securities-based loan balances each quarter for more than two years.
- Look for profits at bank wealth-management units to decline in coming quarters, says Portales Partners' Charles Peabody, in part thanks to declines in securities lending.
- Source: WSJ
Fri, Aug. 14, 5:56 PM
- Berkshire Hathaway (BRK.A, BRK.B) disclosed in its latest 13F filing that it sold off its shares in Phillips 66 (NYSE:PSX) and National Oilwell Varco (NYSE:NOV) during Q2, as it continued to cut its positions in energy companies.
- Meanwhile, BRK kept unchanged its stakes in its “Big Four” holdings American Express (NYSE:AXP), Coca Cola (NYSE:KO), Wells Fargo (NYSE:WFC) and IBM.
- Warren Buffett seemed to hint during a CNBC interview this week that BRK may have built up its IBM stake in the current quarter, saying "I love it when it goes down" when asked whether he was concerned about the stock’s recent performance.
- Buffett’s only new stake in the quarter was a 20M-share investment in auto paint maker Axalta Coating Systems (NYSE:AXTA), which BRK bought from Carlyle Group.
Wed, Aug. 12, 12:27 PM| Wed, Aug. 12, 12:27 PM | Comment!
Wells Fargo & Co is a diversified financial services company. It provides retail, corporate and commercial banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions.
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