Mon, Jul. 6, 4:41 PM
- Last year, the Fed and FDIC found most of wind-down plans submitted by twelve of the largest U.S. banks (or U.S. units of overseas banks) had numerous deficiencies, and sent the lenders back to the drawing board.
- The two government agencies today posted public sections of the latest versions of the living wills, and said they will begin reviewing. Feedback is expected before year-end.
- The lucky 12: BAC, BK, C, GS, JPM, MS, STT, UBS, WFC, BCS, CS, DB.
Mon, Jul. 6, 1:31 PM
- It was a rough start to the year for the financial sector, but at about the mid-point of 2015, the XLF is ahead 9.7%, easily outpacing the S&P 500's 1.8% rise.
- Calling U.S. Treasury yields "considerably more resilient" today than in 2012 thanks to the strength of the economy, Erika Najarian and team don't expect the Greek crisis to impact the 10-year yield or the timing of the first Fed rate hike.
- The bottom line, says Najarian, is to expect continued rotation into the financial names, with solid loan performance in Q2 a catalyst on top of the improved interest rate picture.
- Najarian and team are sticking with their Buy-list of rate-sensitive names: JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Comerica (NYSE:CMA), KeyCorp (NYSE:KEY), Regions Financial (NYSE:RF), SVB Financial (NASDAQ:SIVB), East West Bancorp (NASDAQ:EWBC), and Texas Capital Bancshares (NASDAQ:TCBI).
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
Mon, Jul. 6, 12:14 PM
- The wealth management units of Wells Fargo (NYSE:WFC), Raymond James (NYSE:RJF), and LPL Financial (NASDAQ:LPLA) failed to waive mutual-fund sales fees for certain retirement plan customers and charitable organizations, according to Finra.
- Together the group will have to pay back more than $30M - Wells about $15M, RJF $8.7M, and LPL $6.3M. Bank of America was similarly fined last year.
- None of the three firms will have to pay a fine because they discovered the erroneous fees themselves and reported the issue to Finra.
Tue, Jun. 23, 11:33 AM
- A portion of the $9B commercial real estate loan portfolio recently acquired from GE is focused on manufactured home communities. Wells Fargo (NYSE:WFC) today announces the addition of two industry vets from GE Capital - Lew Grace and Matt Krasinski - who will oversee MHC lending at the bank.
- "Expanding our balance sheet lending in this sector, combined with Wells Fargo's existing product capabilities, provides a full-spectrum of solutions for customers in the manufactured home communities industry," says Mark Myers, head of Commercial Real Estate at the bank.
- Source: Press Release
Tue, Jun. 23, 7:22 AM
- Sumitomo Mitsui Financial Group (NYSE:SMFG) has expressed interested in General Electric's (NYSE:GE) U.S. railway-leasing business, as the latter continues to sell the bulk of its financial services division.
- GE Capital Rail Services, which could be worth around $4B, also has drawn interest from Wells Fargo (NYSE:WFC) and other U.S. financial institutions.
- Source: WSJ
Wed, Jun. 17, 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)
Thu, Jun. 11, 12:46 PM
- Wells Fargo (NYSE:WFC), TD Bank (NYSE:TD), Capital One (NYSE:COF), and U.S. Bancorp (NYSE:USB) are considering making a play for a $40B chunk of GE's U.S. commercial lending business, reports Bloomberg, which says the lenders have signed NDAs in order to review four lines.
- GE reportedly will accept bids for one or multiple lines, and this week is expected to set a date for when initial offers are due.
- While Wells and TD are among a handful of North American banks which have the capacity to buy all four lines, neither is interested in all of them, say sources.
- In total, GE has about $74B in U.S. commercial loans and leases, with nearly all of it up for sale.
Wed, Jun. 10, 12:28 PM
- "If they fit our business model and we're comfortable from a customer standpoint, we'd love to grow that way," says Wells Fargo (WFC +1.3%) CFO Tim Sloan, speaking at an investor conference.
- Webcast and presentation slides
- The bank recently announced an agreement to purchase a $9B property loan portfolio from GE, and Sloan says more acquisitions could as GE continues to divest its GE Capital holdings, or from elsewhere.
- A word of caution from Sloan: "In today's low interest rate environment you could make any acquisition look attractive, and that's dangerous ... You have to use more of a cost of funds over a longer period of time to look at the returns from an acquisition."
Tue, Jun. 9, 2:45 PM
- Yield-starved financial sector names were mercilessly punished to start 2015 as sharply falling interest rates in January again disappointed investors waiting for the return of some spread income.
- The rout in bond prices since, alongside what now seems the near-certainty of the beginning of Fed rate hikes in as soon as three months has helped turn things around, and the sector - as measured by the Financial Select SPDR (NYSEARCA:XLF) - is now in the green for the year, and trails the S&P 500 by just about 150 basis points.
- Among the notable movers today as the 10-year yield rises to another 2015 high: Bank of America (BAC +1.4%), Wells Fargo (WFC +1.2%), U.S. Bancorp (USB +1.4%), Regions Financial (RF +1.3%), Huntington Bancshares (HBAN +1.6%), KeyCorp (KEY +1.6%), PNC Financial (PNC +1.3%), M&T (MTB +1.1%), Bank of Hawaii (BOH +1.6%), First Horizon (FHN +1.2%), Lincoln National (LNC +1.1%), E*Trade (ETFC +0.9%)
- 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
Fri, Jun. 5, 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
Fri, May 29, 9:05 AM
- Higher interest rates would "absolutely" help his bank, says former Wells Fargo (NYSE:WFC) CEO Dick Kovacevich, appearing on CNBC, and he sees the first Fed rate hike probably coming in September.
- It's government regulation to blame for the lame economic recovery, he says, as new rules strangle the economy's growth engines - small businesses. "The real problem with regulation is it really helps large companies. Large companies can deal with regulation. It's the high fixed cost that hurts small companies even more."
- Kovacevich says the small business owners his bank deals with put regulation above taxes in listing their problem issues.
Thu, May 21, 2:50 PM
- Wells Fargo (NYSE:WFC) is close to a deal to add Financial Engine's (FNGN +3.9%) services to its retirement platform, reports Reuters, in a move which would make FNGN's offerings available to another 3.8M 401(k) participants.
- As of the end of Q1, FInancial Engines provided online advisory services to 8.9M 401(k) participants, and served eight of the ten largest 401(k) record-keepers (Wells Fargo is number 7).
- No deal has yet been inked, but talks have been going on for month, and, in February, FNGN CEO Larry Raffone said an LOI had been signed with a leading provider of 401(k) plans.
Thu, May 21, 11:11 AM
- Wells Fargo (NYSE:WFC) becomes the last fund operator to adopt changes to its money market funds to comply with new regulatory rules. Among the major changes: Dropping the fixed $1 per share NAV on institutional prime and municipal funds, and moving to a floating NAV.
- Those funds will also be subject to so-called "gates," in which redemption fees could be assessed during a time of financial stress.
- The changes will become effective on or before Oct. 2016.
- Wells Fargo Advantage Funds had $110.5B in money market AUM as of the end of Q1.
- Source: Reuters
Thu, May 21, 9:30 AM
- Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
- New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
- The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), salesforce.com (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
Wed, May 6, 3:17 PM
- In its 10-Q filing today, Wells Fargo (WFC -2%) said it could suffer as much as $1.2B in losses over and above its legal reserves, up from $1.1B the previous quarter.
- The bank also said loans to oil and gas companies on "non-accrual" increased 26% to $96M. The size of Wells' energy portfolio is $18.48B, or about 2% of the total loan portfolio, and energy loans make up 14% of all C&I loans classified as non-accrual.
Tue, May 5, 8:16 AM
- "Wells Fargo (NYSE:WFC) has generated a virtual fee-generating machine, through which its customers are harmed, its employees take the blame, and Wells Fargo reaps the profit,” according to the lawsuit filed by L.A. City Attorney Mike Feuer.
- At issue are high-pressure sales quotas driving employees to open unauthorized accounts for customers and stick them with bogus fees. Wells, of course, likes to boast about its "cross-selling" success.
- The bank blames the problems on a few rogue employees who have already been fired or disciplined. The suit: "On the rare occasions when Wells Fargo did take action against its employees for unethical sales conduct, Wells Fargo further victimized its customers by failing to inform them of the breaches, refund fees they were owed, or otherwise remedy the injuries that Wells Fargo and its bankers have caused."
- Source: L.A. Times
WFC vs. ETF Alternatives
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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