4 Financial Stock Stories Making Midweek Waves
Citigroup Inc. (NYSE:C): Current price $50.62
Rising mortgage rates have more impact as Citibank has closed an office and is cutting jobs while loan refinancing and volumes stumble. The bank closed its Danville, Illinois, facility thanks to “decreased refinance volumes,” said the bank spokesman Mark Rodgers in an e-mailed statement, reporting that the company also laid off some telephone sales agents.
However, Rodgers would not comment on the number of employees impacted, previously reported by Fox Business Network to be 2,200. Citigroup joins other mortgage lenders including the biggest, Wells Fargo & Co., and Bank of America Corp. in slashing jobs connected with home lending while Federal Reserve discussions reducing its back bond purchases drives mortgage rates higher.
American Capital, Ltd. (NASDAQ: ACAS): Current price $13.32
On Wednesday, American Capital announced that it will offer $350 million aggregate principal amount of Senior Notes due in 2018. The company intends to use the net proceeds for working capital and general corporate purposes, including portfolio investments.
M&T Bank Corp. (NYSE:MTB): Current price $112.64
M&T Bank’s unit Wilmington Trust Co has been sued by heirs to Mennen Co., which makes Speed Stick deodorant, as they seek over $100 million in damages for investment losses. Mennen, founded in 1878, was sold to Colgate-Palmolive Co. in 1992 for $670 million. A descendant, George S. Mennen, established a trust in 1970 with formerly sealed court papers in Delaware Chancery Court in Wilmington.
Other heirs, including Kathryn Mennen, granddaughter to George S. Mennen, allege in a redacted complaint that Wilmington Trust made no restorative action while George Jeffrey Mennen, a co-trustee and her uncle, “wrongly dissipated” trust assets via investments in failing businesses.
Deutsche Bank (NYSE:DB): Current price $46.78
Deutsche Bank AG will now retain its tandem of chief executives until 2017. Co-Chief Executives Anshu Jain and Juergen Fitschen assumed their duties in 2012 from Josef Ackermann and have worked to get the company past lawsuits and legal difficulties that in some cases go back years, also emphasizing the need for the bank to transform its culture. When they were named, Fitschen was given a contract through 2015 and Jain a contract that will expire in 2017.