Financial Biz Cheat Sheet: Bad Day for Bank of America, Fifth Third Bancorp Rocks
Wells Fargo Co. (NYSE:WFC) may see higher profits in the U.S. mortgage market as rivals leave the space. In the third quarter, the bank initiated $89 billion in mortgages, surpassing JPMorgan Chase & Co’s (NYSE:JPM) $37 billion and Bank of America Corp’s $33 billion combined numbers.
Bank of America (NYSE:BAC) has struggled with a rash of bad news over the past few months. In recent actions including Fannie Mae taking out loans from the bank, moving derivatives from Merrill Lynch to its lead bank and integrating parts of the subsidiary into the bank units, it may suggest a bigger agenda: a possible Chapter 11 filing.
Super Hot Feature: Is Bank of America About to Go Bust?
Fifth Third Bancorp (NASDAQ:FITB) reported strong third quarter earnings and jumped to the top of the S&P 500 index and the financial sector today. Along with with its 60 percent profit, the company also said that it didn’t have any exposure to the European debt crisis.
Citigroup’s (NYSE:C) $285 million settlement with the Securities and Exchange Commission pales in comparison to Goldman Sach’s (NYSE:GS) $585 million settlement from last year. The two cases were similar and for Citigroup, it may be a good example that it’s good to be sued later than earlier. Timing may be everything.
KeyCorp (NYSE:KEY) third quarter earnings beat estimates, helping its stock rise today. The bank reported solid growth for the second consecutive quarter in its commercial, financial and agricultural loan portfolios. Adding to the strong report was bottom line margin improvements, which increased three percent from declines in non-interest expenses, decreased credit costs and fewer loan charge-offs with improved asset quality.
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