Banking News Updates: Bank of America Corp (BAC) Mortgage Settlement, JPMorgan Chase & Co (JPM)’s Controls, Wells Fargo & Co (WFC) on Mortgage Servicing Rights

Editor’s Note: Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), American International Group Inc (NYSE:AIG), Goldman Sachs Group, Inc. (NYSE:GS), BlackRock, Inc. (NYSE:BLK)

AIG Attorneys Question Key Player in $8.5B Bank of America Settlement (Update 1) (TheStreet.com)
Bank of America’s attempts to win approval for a controversial $8.5 billion mortgage settlement faced a stiff challenge Thursday as attorneys for American International Group Inc (NYSE:AIG) and other objectors questioned one of the key outside experts used to assess the reasonableness of that figure, in day 23 of hearings before New York State Supreme Court Judge Barbara Kapnick. The proposed $8.5 billion settlement between Bank of America Corp (NYSE:BAC) and 22 big investors including Goldman Sachs Group, Inc. (NYSE:GS), BlackRock, Inc. (NYSE:BLK), PIMCO and the Federal Reserve Bank of New York’s Maiden Lane entities covers $108 billion in losses on mortgage-backed securities. It was agreed upon in June 2011 but has yet to be approved. Hearings resumed this week following a 45-day hiatus.

Jamie Dimon

JPMorgan Beefs Up Controls as Fed Submission Looms (Fox Business)
On top of its multiple regulatory probes and legal headaches, JPMorgan Chase & Co (NYSE:JPM) executives tell FOX Business it is strengthening internal controls and oversight in order to win Federal Reserve approval on its capital plans that it was forced to resubmit by the end of this month, due to central bank concerns over the bank’s stress test results last March. “Clearly the Federal Reserve wants us to beef up controls, it’s something they’re looking for us to do with regards to resubmitting our capital plans later this month,” says a JPMorgan Chase & Co (NYSE:JPM) spokesman.

Wells Fargo Said to Be Selling Mortgage Servicing Rights (Bloomberg)
Wells Fargo & Co (NYSE:WFC), the biggest U.S. home lender, is selling mortgage-servicing rights on $41 billion of loans, according to two people briefed on the process. The rights are for government-backed home loans, according to one of the people, both of whom asked for anonymity because they weren’t authorized to speak publicly about the transaction. The contracts relate to borrowers Wells Fargo identifies as “non-core” because they have few other products from the bank, the other person said. Chief Financial Officer Tim Sloan said earlier this week that the San Francisco-based bank will sell servicing-rights in the coming quarters as a risk-management practice.

$15,000 grant awarded Habitat for Humanity from Bank of America (GreerToday)
Brian Jones, Sr. Vice-President, Greenville Market President and S.C. Area Executive for Bank of America Corp (NYSE:BAC), presented a grant of $15,000 from Bank of America Foundation to Habitat for Humanity of Greenville County. The Thursday presentation included BofA construction volunteers. Habitat Greenville received funding from Civitan Charities of Greenville, The John I. Smith Foundation and TD Charitable Foundation to provide for four Habitat home builds on Gray Street in Travelers Rest.

Edward Jones investment chief likes Bank of America, Wells Fargo (Charlotte Business Journal)
Kate Warne, Edward Jones’ investment strategist, says the U.S. banking industry is enjoying positive momentum, and her firm recommends buying shares in Charlotte-based Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC). St. Louis-based Edward Jones is the only national brokerage that is solely focused on the retail investor. So Warne brings a Main Street approach to her investing strategies. The company has more than 7 million customers across the U.S. And it’s looking to add more advisers to its ranks in Charlotte metro, where it has more than 150 brokers.

J.P. Morgan to spend $4 billion on oversight: WSJ (MarketWatch)
JPMorgan Chase & Co (NYSE:JPM) is planning to spend $4 billion and commit 5,000 extra employees this year to deal with risk and legal-compliance issues at the bank, The Wall Street Journal reported late Thursday, citing unnamed sources close to the bank. The plan involves adding $2.5 billion to J.P. Morgan’s reserves for paying litigation costs, with the other $1.5 billion going to the risk and compliance efforts, including a 30% increase in related staffing, the report said.

Wells Fargo Provides $2,500 Grant To Partnership’s Consumer Credit Counseling Services (The Chattanoogan)
Consumer Credit Counseling Service, a program of Partnership for Families, Children, and Adults, announced that it has received a $2,500 grant from Wells Fargo & Co (NYSE:WFC) designated for Homeowner Education and Foreclosure Counseling. CCCS will use these funds to support their homeownership education course “The Keys to Your Future.” Upon receiving the awarded check from Wells Fargo, CFO Robert Taylor remarked, “We are grateful for the generous support from Wells Fargo and the opportunity to provide this essential education to the community. The Wells Fargo & Co (NYSE:WFC) grant will allow individuals to not only be prepared for the unexpected, but also to be equipped with the necessary knowledge to begin home ownership.”

Recommended Reading:

Wells Fargo & Co (WFC), JPMorgan Chase & Co (JPM), Bank of America Corp (BAC): Demystifying 3 Banks “Losing” Billions

Wells Fargo & Co (WFC), Bank of America Corp (BAC): The Dow Jones Industrial Average (.DJI) Still Doesn’t Have to Worry About Inflation

Apple Inc. (AAPL), JPMorgan Chase & Co. (JPM): Investing Lessons From the Financial Crisis

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