Financial Sector Review: Banks Mortgage Settlement, Goldman Sachs Clients Duped by Sears

Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C): Nokia Siemens Networks (NOK, SI) has raised over EUR1.2B from a consortium of 14 European and U.S. banks, the Financial Times reports. About EUR600M will be provided as a one-year term loan and the remainder is on a three-year term. Banks in the consortium include JP Morgan (NYSE:JPM), Citi (NYSE:C), Royal Bank of Scotland (NYSE:RBS) and Bank of America (NYSE:BAC).

BAC shares closed at $7.25, up $0.18, or 2.55%, on the day. Its market capitalization is $76.39 billion.

C shares closed at $29.85, up $0.21, or 0.71%, on the day. Its market capitalization is $87.28 billion.

Wells Fargo & Company (NYSE:WFC): Banks and government officials have come to terms on a mortgage settlement that would potentially reduce balances and monthly payments by more than $25B for distressed U.S. homeowners, which is now being sent for approval to all 50 state attorneys-general, reported Financial Times, citing state officials and a bank representative.

The shares closed at $30.92, up $0.38, or 1.24%, on the day. Its market capitalization is $162.72 billion.

JPMorgan Chase & Co. (NYSE:JPM) has hired a 26 year Credit Suisse (NYSE:CS) veteran, Marc Granetz, to improve JP Morgan’s financial strength and strategy, according to The New York Times, which cited an internal memo it obtained and confirmation by a JP Morgan spokesman. At JP Morgan, Granetz, who has a wide breadth of experience in investment banking, will look to improve expense management and focus on strategic projects, said the newspaper.

The shares closed at $37.66, up $0.3, or 0.8%, on the day. Its market capitalization is $142.08 billion.

Goldman Sachs Group, Inc. (NYSE:GS): Clients of Goldman Sachs (NYSE:GS) invested about $3.5B in Sears Holdings Corp. (NASDAQ:SHLD) Chairman Edward Lampert’s hedge fund through a special deal over four years ago. Goldman also invested about $75M of its own money. Earlier this month that investment was down several hundred million dollars, mostly because Sears stock dropped 57% last year, reports the Wall Street Journal.

The shares closed at $108.19, down $0.55, or 0.51%, on the day. Its market capitalization is $53.26 billion.

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