Fed Sanctions Goldman Sachs, BK CEO Robert Kelly Departs: Investing in Banks
The Federal Reserve has placed monetary sanctions on Goldman Sachs (NYSE:GS) over deficient practices in residential mortgage servicing at its former subsidiary, Litton Loans. The Fed will give details on the sanctions at a later time.
Earlier today, it was reported that Goldman Sachs, Litton Loan, and Ocwen Financial (NYSE:OCN) reached a deal with the Fed in which they pledge to end robo-signing, among other questionable practices. The agreement will allow Ocwen to go ahead with its $264 million purchase of Litton.
Janus Capital (NYSE:JNS) shares are trading up today after Susquehanna hinted that a strategic buyer could offer as much as $18 per share for the firm.
TD Bank (NYSE:TD) has reported that strong retail banking earnings helped push up third quarter profits by 23% to $1.53 billion. The bank will issue a a 3% increase in its dividend payout to reward investors.
CIT Group (NYSE:CIT) announced this morning that it will redeem $1 billion more of its 7% Series A second-lien notes, making strides toward reducing funding costs and eliminating a total of $14.5 billion of debt since the beginning of 2010.
Late yesterday, Robert Kelly stepped down as chairman, CEO, and director of Bank of New York Mellon (NYSE:BK) “due to differences in approach to managing the company.” However, reports today have Kelly being fired for his “abrasive management style.”