FDIC Reports Fewer Problem Banks, H&R Block Sells, and Lloyd Blankfein Hires Lawyers
The number of financial institutions on the FDIC’s “Problem List” declined for the first time last quarter since the third quarter of 2006. At the end of the second quarter of 2011, there were 865 problem institutions on the list, down from 888 at the end of the first quarter. Institutions insured by the FDIC reported a net income of $28.8 billion for the second quarter, an increase of $7.9 billion, or 37.9%, over the year-earlier period. However, net operating revenue dropped for the second straight quarter, as net interest income fell 1.7% and non-interest income declined 1.9%.
Hot Feature: Gold and Silver Are Soaring Amidst Global Fears.
According to an amended $1 billion complaint by the U.S. Department of Justice, Deutsche Bank (NYSE:DB) knew that MortgageIT had lied about its mortgages when it purchased the lender in 2007, meaning the German bank “expressly assumed responsibility” for the lender’s wrongdoing.
Goldman Sachs (NYSE:GS) CEO Lloyd Blankfein has not been subpoenaed, nor has any Goldman executive, as part of an investigation, as his hiring of criminal defense attorney Reid Weingarten led many to believe. The stock is recovering today after taking a huge hit yesterday on fear the bank would be facing further scrutiny and potentially be subject to a lawsuit and/or damages.
A judge has granted a request by dozens of Bank of America (NYSE:BAC) investors — including pension funds, insurers, and several Federal Home Loan Banks — to intervene in the bank’s proposed $8.5 billion settlement over mortgage-backed securities, scheduling a hearing on the matter for December.
H&R Block (NYSE:HRB) has reached a preliminary non-biding agreement to sell most of its RSM McGladrey tax and consulting business to the McGladrey & Pullen accounting firm for roughly $610 million.