Financial Sector Review: Big Banks on Foreclosure Settlement

Capital One Financial (NYSE:COF) which is seeking approval to purchase ING Groep’s (NYSE:ING) U.S. online bank, was asked by analysts to explain an increase in expenses after their Q4 profit missed estimates, reports Bloomberg. The credit card issuer said non interest expense jumped 25% to $2.62B, net income fell 42% to $407M, and earnings from continuing operations were 89c a share, below the $1.55 estimate of 28 analysts surveyed by Bloomberg.

The shares closed at $46.03, down $2.74, or 5.62%, on the day. Its market capitalization is $21.16 billion.

Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C), Wells Fargo & Company (NYSE:WFC): The five biggest mortgage servicers are ready to sign off on a broad foreclosure settlement, but state and federal officials are still nailing down terms of the deal, making it unlikely that a deal will be reached before President Obama’s State of the Union address on Jan. 24, according to sources speaking to The New York Post.

BAC shares closed at $7.07, up $0.11, or 1.58%, on the day. Its market capitalization is $74.49 billion.

C shares closed at $29.64, up $0.31, or 1.06%, on the day. Its market capitalization is $86.66 billion.

WFC shares closed at $30.54, up $0.39, or 1.29%, on the day. Its market capitalization is $160.72 billion.

JPMorgan Chase & Co. (NYSE:JPM) and Ameriprise Financial (NYSE:AMP) are among the finalists bidding for Deutsche Bank’s (NYSE:DB) DBKGN.UL asset management division, sources say.

JPM shares closed at $37.36, up $0.43, or 1.16%, on the day. Its market capitalization is $140.95 billion.

Goldman Sachs Group, Inc. (NYSE:GS): The Federal Reserve Bank of New York has sold a multibillion-dollar parcel of risky mortgage bonds to a Credit Suisse (NYSE:CS) unit, reports the Wall Street Journal. The bonds were part of a portfolio that the NY Fed took on as part of AIG’s (NYSE:AIG) bailout in 2008.

GS shares closed at $108.74, up $1.06, or 0.98%, on the day. Its market capitalization is $53.53 billion.

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