Big Banks Back in Hot Water

New York state’s financial regulator is looking into whether a number of large banks (NYSEARCA:KBE) — including Citigroup (NYSE:C) and Bank of America (NYSE:BAC) — overcharged customers on force-place insurance, according to a source accustomed to the matter.

The investigation revolves around so-called force-place insurance, in which the loan servicer purchases an insurance policy in case a homeowner does not keep up his or her insurance premiums. The practice, said the source, is more and more commonplace.

This source also reported that Wells Fargo & Co (NYSE:WFC) and JP Morgan Chase & Co (NYSE:JPM) are included in the other major banks being investigated by the office of Benjamin Lawsky, superintendent of New York state’s Department of Financial Services.

Here’s how the big bank stocks closed the day:

Citigroup, Inc. (NYSE:C): C shares recently traded at $31.34, up $1.34, or 4.47%. They have traded in a 52-week range of $21.40 to $51.50. Volume today was 63,974,005 shares versus a 3-month average volume of 56,662,200 shares. The company’s trailing P/E is 8.36, while trailing earnings are $3.75 per share.

Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $6.88, up $0.25, or 3.77%. They have traded in a 52-week range of $4.92 to $15.31. Volume today was 308,574,216 shares versus a 3-month average volume of 262,773,000 shares. The company’s trailing earnings are $-0.31 per share.

Wells Fargo & Company (NYSE:WFC): WFC shares recently traded at $29.58, up $0.17, or 0.58%. They have traded in a 52-week range of $22.58 to $34.25. Volume today was 22,043,249 shares versus a 3-month average volume of 35,571,500 shares. The company’s trailing P/E is 10.96, while trailing earnings are $2.70 per share.

JPMorgan Chase & Co. (NYSE:JPM): JPM shares recently traded at $36.62, up $0.57, or 1.58%. They have traded in a 52-week range of $27.85 to $48.36. Volume today was 23,640,515 shares versus a 3-month average volume of 41,572,500 shares. The company’s trailing P/E is 7.80, while trailing earnings are $4.69 per share.