Editor’s Note: Related tickers: Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc (NYSE:C), Wells Fargo & Co (NYSE:WFC), MBIA Inc. (NYSE:MBI)
N.Y. to sue Bank of America, Wells Fargo over alleged violations of mortgage deal (WashingtonPost)
New York attorney general Eric Schneiderman said Monday he intends to sue Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC) for failing to help struggling homeowners under the $25 billion national mortgage settlement. Schneiderman was one of 49 attorneys general to negotiate the sweeping deal with the nation’s five largest mortgage servicers over foreclosure abuses last year. The lawsuit would be the first case filed against any of the servicers by an attorney general and possibly usher in a new wave of litigation. …“Wells Fargo & Co (NYSE:WFC) and Bank of America Corp (NYSE:BAC) have flagrantly violated those obligations, putting hundreds of homeowners across New York at greater risk of foreclosure,” Schneiderman said in a statement. “I intend to use every tool available to my office to hold these companies accountable.”
MBIA, Bank of America reach legal settlement: sources (Reuters)
Bond insurer MBIA Inc. (NYSE:MBI) and Bank of America Corp (NYSE:BAC) have reached a settlement in an ongoing legal dispute, and BofA will pay MBIA $1.6 billion, sources familiar with the matter said on Monday. Bank of America Corp (NYSE:BAC) will also provide MBIA Inc. (NYSE:MBI) with a $500 million credit line and receive a 4.9 percent stake in the company as part of the deal, said one of the sources. MBIA Inc. (NYSE:MBI) shares, which were temporarily halted, rose 50 percent in afternoon trading to their highest since September 2008. Representatives of the two companies were not immediately available to comment.
Wells Fargo’s banking recipe (TheHinduBusinessLine)
Wells Fargo & Co (NYSE:WFC) is one of the few banks that was able to keep its head above water during the mortgage crisis that took down many of the others in the US. This is surprising, given that it is one of the largest mortgage lenders (home loans) in the US. Of course, it is easy to lay the credit in the lap of the US Government which forced large banks such as Wells Fargo to compulsorily accept financial aid to bolster their balance-sheets. But people in the banking circle know that Wells Fargo & Co (NYSE:WFC) would have survived even without the Government’s largesse. Today, Wells Fargo & Co (NYSE:WFC) is one of the most valuable banks (by market cap) in the US and probably one of the safest too.
Investors may lobby JPMorgan to clip Jamie Dimon’s wings if vote fails (ET)
JPMorgan Chase & Co. (NYSE:JPM)‘s Jamie Dimon may be losing ground in his fight to keep the title of chairman, as some major investors push for more oversight of the chief executive after the “London whale” trading losses. At the largest U.S. bank’s annual meeting in two weeks, shareholders will be able to vote on a non-binding proposal to separate the chairman and CEO roles. Two of the bank’s top 10 shareholders told Reuters they are considering voting in favor of the proposal, a reversal of their position last year, because of the disastrous bets on credit derivatives that cost the bank more than $6 billion last year. The proposal is only a non-binding recommendation and it is not clear what the board will do if it passes. ISS Proxy Advisory Services, the leading proxy advisory firm, on Friday recommended investors support the proposal and also said they should vote against the re-election of three directors who they said had failed in their oversight of the bank.
A Call for New Blood on the JPMorgan Board (NYTimes)
An influential shareholder advisory firm has recommended that investors withhold their support for three JPMorgan Chase & Co. (NYSE:JPM) directors, citing “material failures of stewardship and risk oversight” in the wake of a big trading loss last year. The firm, Institutional Shareholder Services, or I.S.S., urged shareholders not to vote for three directors who serve on the board’s risk policy committee — David M. Cote, James S. Crown and Ellen V. Futter. The results of the vote will be announced at the bank’s annual meeting later this month. In its report released late Friday, I.S.S. noted that only under “extraordinary circumstances” does it consider recommending shareholders oppose directors.
Alwaleed says Citi split-up “completely dead” (ArabianBusiness)
A potential split-up of the operations of US bank Citigroup Inc (NYSE:C) is now “completely dead,” Saudi prince Alwaleed bin Talal, the bank’s largest individual shareholder said in an interview on Monday. “The idea of splitting Citi is now dead completely. The latest results of Citigroup Inc (NYSE:C) were the best among the banks,” Prince Alwaleed, who holds the stake through his investment firm Kingdom Holding told Reuters. The Saudi prince said the conservative strategy of Citigroup Inc (NYSE:C) Chief Executive Mike Corbat was beginning to reflect in the bank’s financial results.
Citigroup Says Firms to Delay Deals to Cut Debt: Corporate India (BusinessWeek)
Indian companies may defer plans to acquire rivals and add capacity by about three years as they focus on reducing record debt, according to Rahul Shukla, Citigroup Inc (NYSE:C)’s local head of corporate banking. Net debt at companies, excluding banks and finance firms, on the S&P BSE200 index more then doubled to $196 billion as on Dec. 31 from $92 billion in 2008, according to data compiled by Bloomberg. It would take two to three years for companies to cut their liabilities, Shukla said. A delay in investments may stall Finance Minister Palaniappan Chidambaram’s attempt to revive growth in Asia’s third-largest economy, said Anjan Ghosh, head, corporate ratings at the Indian partner of Moody’s Investors Service.
Citigroup Inc. : Citi Celebrates SFMade Week by Showcasing Locally Manufactured Products in all San Francisco Citibank Branches (4-Traders)
From handbags to furniture to guitars, Citigroup Inc (NYSE:C) will help celebrate SFMade Week with displays of locally manufactured products in all 25 of the city’s Citibank branches. Today through Friday, May 10, visitors to Citibank branches will have the opportunity to peruse products manufactured in the city, vote for their favorite manufacturers, and win cash prizes for those businesses to help them grow. SFMade Week, which seeks to build awareness of and support for the city’s vital manufacturing sector, was kicked off last Friday at an event featuring House Democratic Leader Nancy Pelosi (D-CA).
