3 Financial Stock Stories For a Tuesday Perusal

Wells Fargo & Co. (NYSE:WFC): Current price $37.08

The number-one domestic mortgage originator is growing its home-lending headquarters in Iowa, as it plans for expansion even as the industry forecasts a slowing market. The bank has begun construction on a building that will swell the capacity at its West Des Moines office complex by roughly 28 percent, or 265,000 square feet, according to a statement released earlier this week. Bank spokesman Alfredo Padilla said in an email that the project will cost $100 million and that the edifice will house some 1,800 workers and a parking garage is planned as well.

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WFC

Citigroup (NYSE:C): Current price $46.42

Shareholder meetings are getting more attention than ever before, as investors and observers want to know more about what is going on at banks. Bank analyst Mike Mayo went the extra mile by purchasing stock in certain firms, including Citi and JPMorgan Chase, just to be allowed to attend the meetings and hopefully get answers to some questions. When Citi shareholders meet on Wednesday in New York, Mayo will be in attendance to ask some tough questions, such as: “If performance falls short or the value of the parts remains far in excess of Citi’s market cap, would a break-up get considered?” The meeting should mark the first time that Citi’s new Chairman and Chief Executive Michael Corbat will directly face shareholder questions. However, a proposal that would have required the bank to explore breaking itself up was not permitted on this year’s proxy after the Security and Exchange Commission  determined it to be “too vague.”

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C

Goldmn Sachs Group (NYSE:GS): Current price $142.69

The analyst Brad Hintz at Sanford C. Bernstein & Co. says that the Wall Street bank that generates the highest percentage of revenue from trading, might be able to post a higher return on equity than its rivals. In a Bloomberg Television interview with Tom Keene, Hintz remarked that Goldman Sachs could generate ROE of between 15 and 20 percent, which would make the firm an “outlier” among the largest banks and Wall Street firms, which will likely generate ROE of around 12 to 15 percent. The analyst said that banks will continue to reduce compensation in an endeavor to grow return.

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GS

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