JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), and other mortgage servicers could realize as much as $12 billion in revenues in 2012, by refinancing mortgages under the Federal program HARP, which is a federal program designed to assist struggling homeowners. In contrast, borrowers who take advantage of HARP refinancing may save between $2.5 billion and 5 billion this year.
Likely being punished for its share of an insider trading scheme in Japan, top underwriter Nomura (NYSE:NMR) is disallowed from participating in the Japanese government’s divestiture of $6 billion worth of Japan Tobacco shares. Observer wonder if the bank will also be excluded from the upcoming Japan Airlines initial public offering.
A list of the majors banks most exposed to shrinking net interest margins (compiled by John Pancari at Evercore) includes Bank of America (NYSE:BAC), Commerce (NASDAQ:CBSH), FirstMerit (NASDAQ:FMER), First Niagara (NASDAQ:FNFG), Wells Fargo, M&T (NYSE:MTB), BBT, and PNC. The list of those best able to deal with the margins has JPMorgan, KeyCorp (NYSE:KEY), and Regions (NYSE:RF) all aboard.
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