Banking Updates: Bank of America Corp (BAC)’s Lawsuit, JPMorgan Chase & Co. (JPM)’s Stiff Competition & Wells Fargo & Co (WFC)’s Headline Risks

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Editor’s Note: Related tickers: Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), Nokia Corporation (ADR) (NYSE:NOK)

U.S. judge rejects BofA mortgage modification class action (Reuters)
A lawsuit accusing Bank of America Corp (NYSE:BAC) of reneging on promises to help distressed homeowners modify their mortgage loans, and instead driving them into foreclosure, cannot proceed as a class action, a federal judge has ruled. While expressing sympathy for borrowers facing a “Kafkaesque bureaucracy” and saying their claims “may well be meritorious,” U.S. District Judge Rya Zobel in Boston said they were too different to justify allowing a single, nationwide lawsuit.

Jamie Dimon

JPMorgan Chase Drops Out of Student Lending (AmericanBanker)
JPMorgan Chase & Co. (NYSE:JPM) is getting out of the student loan business. The $2 trillion-asset company will stop accepting new student loan applications on Oct. 12, the company said Thursday. Stiff competition from federal lending programs led the bank to conclude that private student loans held limited future potential. “Students and their families are increasingly relying on government-backed loans rather than private student loans, and as a result the market has declined by 75% in the last five years,” JPMorgan Chase spokeswoman Trish Wexler told American Banker.

Wells Fargo Sails Through the Storm (TheStreet)
Five years from the peak of the credit crisis, it’s clear that Wells Fargo & Co (NYSE:WFC) has gotten its cake and eaten it too. The bank was able to double in size from its early 2009 acquisition of Wachovia, while avoiding the type of mortgage mess inherited by Bank of America Corp (NYSE:BAC) through its purchase of Countrywide in 2008. With a simpler balance sheet, Wells Fargo has also avoided the headline risk and drag on shares being suffered by JPMorgan Chase & Co. (NYSE:JPM) from multiple federal investigations.

Analyst views Bank of America stock as a ‘good buy’ (HousingWire)
An article in Seeking Alpha says Bank of America Corp (NYSE:BAC) has moved along at a steady pace this year, but started to wane in recent weeks. However, when looking ahead, one analyst says it’s now time to buy BAC. …I see major opportunity ahead for Bank of America shareholders as the efforts by management to turn this behemoth around gain traction.

Push Is On at JPMorgan to Unload Non-Core Assets (FoxBusiness)
JPMorgan Chase & Co. (NYSE:JPM), the nation’s largest bank, has launched a firm-wide effort to sell off assets as regulatory probes into its operations continue to mount, the FOX Business Network had learned. People inside the bank say that JPMorgan chief executive Jamie Dimon has given a directive to sell what he views as “non-core” assets and what the firm views as “hobbies” or businesses that aren’t big money makers.

JPMorgan: No more student loans (CNBC)

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