Sep. 30, 2015, 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.
Sep. 17, 2015, 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
Sep. 14, 2015, 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.)
Sep. 14, 2015, 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.
Sep. 8, 2015, 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)
Sep. 2, 2015, 9:05 AM
Sep. 1, 2015, 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
Sep. 1, 2015, 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.
Aug. 27, 2015, 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.
Aug. 27, 2015, 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
Aug. 14, 2015, 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.
Aug. 12, 2015, 12:27 PM
- Michael Heid has been with Wells Fargo (WFC -1.1%) for 28 years, and had been president of Wells Fargo Home Mortgage since 2011 (and co-president from 2004-2011).
- He'll be succeeded, effective Oct. 1, by Franklin Codel who is currently head of mortgage production.
Aug. 11, 2015, 6:05 PM
Reuters reports Wells Fargo (NYSE:WFC) has begun an auction for its crop insurance unit, and could get over $1B. A spokeswoman has confirmed Wells Fargo is exploring options for the business that may include a sale, while adding the bank plans to keep its crop insurance brokerage arm.
- The business collects over $2B/year in insurance premiums from farmers, and has over 4K licensed agents. Potential bidders are said to include PartnerRe, Axis Capital, and Allianz.
- Low interest rates and extreme weather have weighed on the crop insurance market. Meanwhile, regulatory pressure has led various banks to lower their insurance exposure.
- Reuters reports Wells Fargo (NYSE:WFC) has begun an auction for its crop insurance unit, and could get over $1B. A spokeswoman has confirmed Wells Fargo is exploring options for the business that may include a sale, while adding the bank plans to keep its crop insurance brokerage arm.
Jul. 30, 2015, 3:27 PM
- An uncertain regulatory environment - the CFPB has been busy going after lenders for any number of MSA-related violations - is to blame, says Wells Fargo (WFC +0.3%). The move is effective August 1 and the wind down will take place over the next 90 days.
- "Real estate firms and builders always have been and will continue to be very important to Wells Fargo's retail mortgage operations, and we are exploring a number of new options for enhancing and strengthening those relationships over the long term," says the bank's Franklin Codel.
- "It's very difficult to operate MSAs in the regulatory environment we're in right now," says attorney Mitchell Kider. "The CFPB has created a situation where MSAs are not a viable solution for marketing in today’s environment."
- Prospect Mortgage is also exiting MSAs and expects its action to be done by the end of the quarter.
Jul. 28, 2015, 3:05 PM
- Wells Fargo (NYSE:WFC) declares $0.375/share quarterly dividend, in line with previous.
- Forward yield 2.61%
- Payable Sept. 1; for shareholders of record Aug. 7; ex-div Aug. 5.
Jul. 28, 2015, 2:16 PM
- Wells Fargo's (NYSE:WFC) wealth management division is beating the bushes for individuals who can afford the minimum $100K investment into The Apollo Natural Resources II ASP Fund, and it's already raised about $7M.
- Launched in December, the Wells Fargo Investment Institute will be managing the fund, and sees "an improving outlook" for commodities in its mid-year outlook.
- The Bloomberg Commodity Index is off 28% Y/Y, and at about a 13-year low.
- It was earlier reported that Wells was partnering with Apollo Global and the fund was trying to raise $3B.
- Source: Bloomberg
Wachovia Corp. provides commercial and retail banking services. The company offers personal finance and wealth management services. It was founded in 2001 and is headquartered in Charlotte, NC.
Industry: Money Center Banks
Country: United States
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