banking sector

Inside JPMorgan Chase's Earnings

JPMorgan Chase reported a second-quarter profit of $5.4 billion, or $1.27 per share this morning, up from $4.8 billion, or $1.09 per share a year ago. Digging into the earnings supplemental, we can see how -- as in previous quarters -- JPMorgan's investment bank carried the company's overall results.

Bank of America Hit With Foreclosure Lawsuit

Bank of America Corp. (BAC) is the subject of a lawsuit that accuses the bank of hiding foreclosure problems that contributed to a drop in its share price. The suit, filed by a union benefit plan, says Bank of America concealed problems in its recording of mortgages, Reuters reported. This damaged investors when the company suspended foreclosure proceedings last year, the suit says.

Investors Extend Talks With Bank of America Over Mortgage Bonds

Bank of America (BAC) said talks will continue with bondholders who are demanding it buy back securities backed by billions of dollars of bad mortgages. Bank of America has been in talks with investors including Pacific Investment Management Co (Pimco), BlackRock Inc (BLK) and the Federal Reserve Bank of New York over $47 billion of mortgage bonds, Bloomberg News reported.

Bailouts Earn $35 Billion for U.S. Taxpayers

The federal governments bailout program has earned the taxpayer nearly $35 billion in the last two years, The Associated Press said. Income from the Troubled Asset Relief Program (TARP) rose by almost 17% through November compared with the estimate in October, the AP said.

U.K. Banks Face Government Levy

Five U.K. banks may have to pay hundreds of millions of pounds in a levy that aims to charge them for the risks they pose to the country%u2019s economy. The planned bank levy will raise a total of 2.5 billion pounds ($3.59 billion) a year from 2012 onwards, The Wall Street Journal said.

State Street to Cut 1,400 Jobs

State Street Corp. (STT) plans to cut 1,400 jobs and reduce real estate costs as near zero interest rates eat into profit. The job cuts represent about 5% of the bank%u2019s workforce, Bloomberg News said. The measures should save the company as much as $625 million a year by the end of 2014.

WikiLeaks to Reveal U.S. Bank Documents Next

WikiLeaks strikes again, taking aim this time at U.S. banks. The site says it plans to release tens of thousands of internal documents from a major U.S. bank early next year.

FDIC Confirms Good News, Bad News for U.S. Banks

The financial headlines of the last several months have shown large banks making near-record profits, and small banks being closed at a pace of three or four per week. The FDIC has released its comprehensive report on the industry for the third quarter, and it confirms that fairly positive assessment.

China's ICBC Buys Fortis U.S. Unit for $1

Industrial & Commercial Bank of China, the Asian country%u2019s largest lender, bought a U.S. unit of Fortis Securities for $1. ICBC is the world%u2019s largest bank by market value and is 70% owned by the Chinese government, The Wall Street Journal said. ICBC bought the unit from France%u2019s BNP Paribas (BNPQY).

Bank of America Reportedly Planning Layoffs

Bank of America (BAC) is laying off as many as 400 people as revenue from trading and advising clients falls. Bank of America, the country%u2019s largest bank by assets, is laying off people ranging from junior analysts to managing directors, Bloomberg News said without naming its sources.

Bank of America Considers Tiered Fee Structure

Bank of America (BAC) may introduce a tiered fee structure modeled on mobile phone service contracts. Under the proposed scheme, the bank would reward customers who maintain minimum current account balances, use their credit card a certain number of times each month, or do all their banking online, The Financial Times reported. Customers who don%u2019t do these things would be charged more.

Wilbur Ross, Carlyle Will Buy Ireland's Education Savings Bank

Investor Wilbur Ross will buy Ireland%u2019s troubled Education Savings Bank as part of a consortium with private equity outfit Carlyle and Dublin-based Cardinal Group. The consortium will close the deal for the bank, which has about $15 billion in deposits, as soon as next week, Ross told CNBC.

Bank of America Could Sell Some Non-Core Assets

Bank of America (BAC) is planning to highlight billions of dollars worth of assets that it intends to sell or wind down. The bank has told investors and analysts that it is considering disclosures on assets including loans, businesses and stakes that it considers non-core, The Financial Times reported without naming its sources. The non-core assets could be worth more than $100 billion.

JPMorgan May Let Staff Use iPhone for Work Email

JPMorgan Chase (JPM) may allow employees to use the Apple (AAPL) iPhone for work e-mail, making the smartphone an alternative to the BlackBerry. JPMorgan is testing the iPhone as well as smartphones that use Google%u2019s (GOOG) Android software, Bloomberg News reported without naming its sources. A decision is expected later this year.

Deutsche Bank Plans $11.5 Billion Share Sale

Deutsche Bank (DB), Germany%u2019s largest lender, is to announce a share sale worth as much as 9 billion euros ($11.5 billion) as it prepares for tighter regulations and aims to purchase a larger stake in Postbank. The plan may be announced early next week, The New York Times reported without naming its sources. Also next week, the Basel Committee on Banking Supervision may decide that banks should hold bigger capital reserves.

HSBC Chairman Will Step Down to Become UK Trade Minister

Stephen Green, the chairman of British bank HSBC (HBC), will step down to become the United Kingdom%u2019s new Trade Minister, BBC News reported. The appointment will be announced later today, BBC News said without naming its sources.

Barclays Appoints Robert Diamond as CEO

British bank Barclays PLC (BSC) appointed Robert Diamond Jr. as CEO, according to The Wall Street Journal. Diamond is currently the head of Barclay%u2019s investment banking business. He will replace John Varley, who will step down on March 31, The Wall Street Journal said.

Fuld: Regulators Had 'Flawed Information' in Lehman Bankruptcy

U.S. regulators used "flawed information" when they decided not to extend the kind of aid to Lehman Brothers that later went to other financial institutions, the bank%u2019s former CEO Richard Fuld says. Lehman filed for the nation%u2019s largest-ever bankruptcy in September 2008, a move that sparked panic in the financial markets.

FDIC: More Sick Banks but Sector Is Recovering

The FDIC says the number of troubled financial institutions and bank failures are increasing, but the number of loans 90 days or more past-due has declined for the first time in four years. FDIC chair says "This is the best quarterly profit for the banking sector in almost three years."

Axa Slashed Goldman Stake in the Second Quarter

Axa (AXAHY), the largest investor in Goldman Sachs (GS), cut its stake by more than 50% in the second quarter as the bank dealt with civil fraud charges and flagging business. Axa, a French insurance and wealth management company, reduced its stake in Goldman from about 5% at the start of April to 2.1% at the end of June, the Financial Times reported. That%u2019s a sell-off of more than 16 million shares.

Foreclosure Relief: Good for Banks, Bad for Borrowers

Many troubled homeowners in HAMP, the federal foreclosure relief program, end up losing their property anyway. Banks gain the most by delaying repossessing houses they can't sell, while collecting more monthly payments from strapped borrowers.

Legal Briefing: Barclays Joins List of Sanctions Violators

Barclays agreed to pay $298 million to settle criminal charges that it did business with countries like Cuba, Iran, Libya and Sudan, violating U.S. economic sanctions against these nations. Barclays is just the latest in a string of banks that have transacted with such countries.

Santander Restarts Talks With M&T Over Combining U.S. Operations

Spanish bank Santander (STD) has restarted talks with M&T Bank (MTB) about merging its U.S. operations with the regional bank, based in Buffalo, NY. The two had discussed a similar deal, but talks broke down in May over who would control the new, enlarged business, The Financial Times reported.

Legal Briefing: Will Banks Have to Refund Overdraft Fees?

A judge ruled that Wells Fargo has to pay its customers restitution for processing checking-account transactions in a way that makes the most charges bounce and maximizes overdraft fees. Other banks have also been sued over this issue.

Figuring Out the Fed: What Will Bernanke Do?

In his latest Capitol Hill testimony, Fed Chairman Ben Bernanke said the U.S. economic outlook is "unusually uncertain," and was opaque about his plans. But don't confuse that with an unwillingness to act. Here's a look a what the Fed's likely options are: