3 Financial Stock Stories To Take To The Bank

JPMorgan Chase & Co. (NYSE:JPM): Current price $48.07

Regulators intend to blame JPMorgan, which served as Bernie Madoff’s principal bank for two decades, for not conducting sufficient due diligence and reporting suspicious activity, according to an inside source. It is anticipated that the Office of the Comptroller of the Currency will issue a cease-and-desist order against JPMorgan, which will mandate that it put an stop to the alleged failures in its anti-money laundering practices. The  order could come later in 2013, reported the source, who added that a fine is not expected. However, should the OCC not be satisfied with JPMorgan’s response, it could take harsher action against the firm, including financial penalties.

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Citigroup (NYSE:C): Current price $46.63

On Monday, Citi said that its is reserving less money to cover losses on loans, a decision that analysts say heralds the bank is more and more confident about the recovery of the domestic housing market, according to MarketWatch. The firm lost billions of dollars during the 2008 financial crisis following its issuance of risky loans to subprime homeowners who subsequently failed to make payments on their mortgages, setting off a wave of foreclosures not seen since the Great Depression. At the peak of the crisis, Citigroup received $45 billion from the United States Treasury, representing the largest share of the federal government’s bank bailout. As part of its latest quarterly results, Citi announced a first-quarter loan loss reserve release of $652 million, which is down 44 percent year-over-year from 2012. Citi Holdings had a net loan loss reserve release of $351 million.

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State Street Corporation (NYSE:STT): Current price $58.27

State Street Global Advisors sees its market share of the United States ETF business decline somewhat as investors withdraw funds from its two biggest funds, SPDR Gold Shares  and SPDR S&P 500. State Street was the second-largest ETF provider at the end of the first quarter, but Vanguard Group is ramping up to challenge the firm. At the end last month, State Street held $345 billion in ETF assets, or 23.5 percent of the market share.

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Investing Insights: Can JPMorgan Chase Stay in the Lead?