5 Big Stock Stars on Wall Street Friday
Wells Fargo & Company (NYSE:WFC): According to Financial Times, the 19 largest U.S. banks are at least $50B from reaching the Fed’s new capital requirements under Basel III accords, while smaller U.S. banks are nearly $10B short. The Fed previously stated that most banks should find it possible to reach the requirements by retaining earnings without having to increase capital.
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General Electric Company (NYSE:GE): Democratic Senate Majority Leader Harry Reid suggested two items from a previous Senate bill be used in order to gain the revenue required to prevent the doubling of interest rates on student loans. The Washington Post says that the guidelines, previously included in a highway bill Senate passed but House stalled, would lower the amount of tax deductions that businesses cold take from pension liabilities, and raise premiums companies must pay for federal pension insurance. Republican Senate Minority Leader Mitch McConnell stated that the GOP would examine the proposal. The proposal could impact General Electric’s financing unit.
Microsoft Corporation (NASDAQ:MSFT): Chris Mellor writes that Microsoft is “Taking the fight right to Amazon (NASDAQ:AMZN)” after the company’s Azure cloud storage team announced the slashing of prices by 90%, dropping 100K transactions to $0.01, and adding new features.
Citigroup Inc. (NYSE:C): Reuters reports that because of concerns in regards to Universal Music’s (VIVHY) interest in a $1.9B purchase of EMI’s (NYSE:C) recorded music division, EU competition regulators are constructing a “statement of objections.” This pressures Universal to offer concessions in order to gain the EU’s acceptance of the deal.
Chesapeake Energy Corporation (NYSE:CHK): In a regulatory filing, the owner of 13.9% of Chesapeake’s outstanding shares, Southeastern Asset Management said, “We applaud this morning’s announced sale of the midstream assets…We are pleased that the company has moved so quickly to increase its financial flexibility, and support management’s intentions to monetize other meaningful non-core assets not recognized in today’s share price. We believe that management and the soon-to-be reconstituted board will vigilantly prioritize and pursue these and other value-creating opportunities.”
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