4 Financial Stock Stories to Take to the Bank

Wells Fargo & Co. (NYSE:WFC): Current price $39.87

A top Wells Fargo executive said Wednesday that his firm wants to step up its bond purchases, in order to benefit from higher potential returns from investments while interest rates in the United States head upwards. Chief Financial Officer Tim Sloan explained at Deutsche Bank’s Global Financial Services Investor Conference that “the current back-up in rate, we think, is attractive and will allow us to invest at a slightly faster rate than how we were investing maybe 30 days ago and 60 days ago.” Wells currently is sitting on excess funds, due to depositors bringing in money faster than the bank can lend it out, thus it has cash  that it can invest.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

WFC

U.S. Bancorp (NYSE:USB): Current price $34.91

The top United States derivatives regulator CFTC, on Wednesday has sued a division of U.S. Bancorp, saying that it unlawfully used customer funds from Peregrine Financial Group, which was the futures brokerage that collapsed last July. The  complaint claims that U.S. Bank N.A. used funds of Peregrine customers as security on loans and improperly held the funds in an account that it treated as a Peregrine commercial checking account. The former Peregrine Chief Executive Russell Wasendorf Sr. began serving a 50-year sentence in February for stealing $215 million from customers.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

USB

JPMorgan Chase & Co. (NYSE:JPM): Current price $53.05

The Wall Street giant has suffered big losses for its involvement in helping to finance the sewer system in Jefferson County, Alabama. A deal was announced late Tuesday, in which a part will cause JPMorgan to lose roughly $840 million of the $1.2-billion debt of sewer debt that it owns. The firm was the largest creditor in the county’s bankruptcy case, and thus is taking the biggest hit in the deal. For several years, JPMorgan officials has expected a loss on the sewer debt. Prior to Jefferson County’s bankruptcy filing in November of 2011, JPMorgan took the lead in attempting to negotiate a resolution with the county and other creditors.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

JPM

Deutsche Bank (NYSE:DB): Current price $46.68

DB Co-Chief Executive Anshu Jain says that he is cautiously optimistic concerning the health of the world economy, but he worries about what he terms as regulatory “balkanization,” as he told CNBC’s Closing Bell on Tuesday, “At some point the (Fed’s) bond-buying program will come to an end and when it does it will have an impact on the overall term structure of interest rates.” Jain noted that the normalization of bond yields over the past month has been constructive, adding that while markets fret about the Federal Reserve and possible ramifications as it ends quantitative easing, investors are fairly sanguine in regards to the world economy. Beyond that, Deutsche Bank anticipates higher growth for the United States economy than does many of its peers, and forecasts an end to the Fed’s bond-buying expansionary program as soon as the end of 2013, or at the latest during the first quarter of 2014.

Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.

DB

Don’t Miss: IMF’s Lagarde: Budget Cuts Are Slowing Down America.