Archive for December, 2009
General Eclectic (NYSE: GE) Says Lending Arm’s Profits to Improve by 2011
General Electric (NSE: GS) says that profits from its lending arm, GE Capital, will improve by 2011. Before GE Capital returns to a state of profitability, it has many hurdles that it needs to clear, including the unit’s exposure to commercial real estate loans that are likely to generate losses. The lending arm has a [...]
Federal Reserve and FDIC Take Tough Stance on Citigroup’s (NYSE: C) TARP Exit
The Federal Reserve and the FDIC are taking a hard line than the Treasury Department on how much capital Citigroup (NYSE: C) should be forced to raise before the company repays its $20 billion in funds that the company borrowed from the Troubled Asset Relief Program. The Federal Reserve is considered to be the bank’s [...]
Wells Fargo (NYSE: WFC) TARP Repayment Hindered by Debt to Prudential Financial (NYSE:PRU), May Not Follow Bank of America (NYSE: BAC) After All
Wells Fargo & CO’s (NYSE: WFC) efforts to follow Bank of America (NYSE: BAC) in the repayment of U.S. bailout funds may be delayed by a $5 billion debt that the company owes to Prudential Financial Inc. (NYSE: PRU), which could rain the company’s capital reserves or force the company to issue new securities, diluting [...]
JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon Admits Home Mortgage Losses Still Ahead for the Company
At the Goldman Sachs U.S. Financial Services conference in New York, JPMorgan Chase & Co.’s (NYSE:JPM) CEO Jamie Dimon stated there will be more losses at the bank next year in its residential mortgage business. While Dimon said there were some general signs that some stability was returning to the home loan market, it’s far [...]
Morgan Stanley (NYSE:MS) Fires Mitch Petrick as Head of Trading
After major rivals outperformed the institutional security division of Morgan Stanley (NYSE:MS), head of trading Mitch Petrick was shown the door. The institutional securities unit of Morgan Stanley is the largest one in the company, so its impact significant enough to require performance equal to or better than its rivals in order to compete against [...]
JP Morgan Chase (NYSE: JPM) Announces Plans to hire 1,200 Retail Bankers
JP Morgan Chase & Co (NYSE: JPM) has announced that it will expand its retail banking unit by hiring 1,200 bankers and opening about 120 new branches by the end of 2010. The company’s CEO, James Dimon, made the announcement to investors during a presentation during Goldman Sach’s U.S. Financial Services Conference in New York. [...]
Judge Approves Reorganization Plan for CIT Group (OTC:CITGQ.PK) to Come Out of Bankruptcy Protection
Cit Group Inc. (OTC:CITGQ.PK) has received approval from a judge to exit its bankruptcy protection and implement its reorganization plan. Formerly of the the largest lenders to small and medium-sized lenders in America, Cit Group filed for bankruptcy on the 1st of November when it couldn’t find the cash to continue operations. The bankruptcy came [...]
FDIC Chairman Sheila Bair Wants to Create Fund Forcing Banks to Contribute: Would Protect Against Big-bank Failures She Says
The U.S. government and its representative workers like FDIC chairman Sheila Bair, still don’t get why they should leave the market alone and let it work out its own problems and challenges. In Bair’s case, the latest potential interference is to force banks (and other secured creditors) to create a fund in order to protect [...]
CIT Group To Emerge From Bankruptcy On Thursday
Just over a month after filing for Chapter 11 bankruptcy protection, CIT Group Inc. announced Tuesday that a judge approved its reorganization plan and the small and mid-size business lender will emerge from bankruptcy protection this Thursday. CIT Group, which is based in New York, received pre-approval of a bankruptcy restructuring plan from shareholders back [...]
Morgan Stanley (NYSE: MS) Undergoing Significant Changes in Leadership
Morgan Stanley’s new CEO has ousted its head of sales and trading and brought on the company’s first female chief financial officer in a major reshuffle of senior management. James Gorman, who will succeed John Mack as CEO on the 1st of the year, has also picked new co-presidents for institutional securities, including Colm Kelleher, [...]
Federal Reserve Drains $180 Million from Banking System via Repurchase agreements with JP Morgan Chase (NYSE: JPM) and Bank of New York Mellon (NYSE: BK)
The Federal Reserve announced that it had drained $180 million in temporary reserves from the banking system when it arranged eight-day tri-party reverse repurchase agreements with JP Morgan Chase & Co (NYSE: JPM) and Bank of New York Mellon Crop (NYSE: BK). The transaction is one of the many tools that the Federal Reserve is [...]
Bank of America (NYSE: BAC) Repaying TARP, Signs of Rebound?
Last week, Bank of America (NYSE: BAC) announced its plans to repay the TARP funds that it received. Some perceived this as a ceremonious win for the Troubles Asset Relief Program, and interpreted it as an indication that the bailed out firms have rebounded, and about to embark upon widespread growth. Unfortunately, this is likely [...]
CIT Group (NYSE: CIT) Clear Bankruptcy Hurdle, Deal With Creditors Approved
On November 1st, CIT Group Inc. (NYSE: CIT) filed for bankruptcy protection in New York State Courts. In their press release at the time, the major lender to small and medium sized businesses noted they hoped to move out of court quickly, and avoid a drawn-out fight with creditors. Today, it seems their wish has [...]
Bank of Nova Scotia (NYSE: BNS) Posts Strong Results, Led By Investment Banking
While Investment Banking revenues have remained flat at most US firms, there has been an interesting development north of the border: the Bank of Nova Scotia (NYSE: BNS), the third largest bank in Canada posted it’s biggest quarterly profit increase since 2002, attributed to higher investment banking fees. Net income in the fourth quarter rose [...]
U.S. Bancorp (NYSE: USB) seeking new opportunities with credit card portfolio
According to Reuters, U.S. Bancorp (USB) sees new opportunities with their credit card portfolio even as the credit card industry as a whole crumbles under the weight of record losses and tight regulation, Unlike rivals struggling with huge credit losses, such as Bank of America Corp (BAC) or Citigroup Inc (C), U.S. Bancorp’s credit card [...]
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