banking stocks

At Little Signature Bank, Back to Basics Is Paying Off Big

The pint-size Manhattan bank's market cap of $2 billion is dwarfed by JPMorgan's $161.5 billion and BofA's $126.4 billion. Still, Signature has done far better for investors this year. By steering clear of risky derivatives and sticking with basic banking, Signature is thriving.

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.

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.

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.

Morgan Stanley Shares Jump on Solid Earnings Report

Morgan Stanley's second-quarter earnings easily topped Wall Street's expectations as the investment bank swung to a profit from a year-ago loss on sharply higher revenue. Adjusted earnings were 80 cents per share, versus the 46-cent estimate.

Smaller Loan Losses Lift Bank Earnings

Bank of America, Citi and JPMorgan Chase reported earnings that beat expectations -- despite a drop in investment banking and trading income. Results were buoyed by lower losses on loans and credit cards and resulting cuts in loan reserves that were bigger than expected.