Wall Street Brief: Bank of America Fee Chatter, Greece Bailout Closer
Greece is getting closer to receiving its second bailout package as European leaders and finance ministers will meet over the next two days to finalize details. The group, gathering in Brussels, will also talk about proposals for long-term growth but a decision on whether or not to increase the euro-zone rescue fund will not be part of the conversation.
Don’t Miss: Fannie Mae Wants Another Bailout.
Bank of America (NYSE:BAC) is again planning to raise fees on customers with checking accounts. Unless they begin banking online, they will either be hit with a monthly fee, asked to purchase additional products or keep certain balances, reported The Wall Street Journal.
The proposal by the bank comes as the banking industry faces a number of challenges. Competitors, such as J.P. Morgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC) are also rolling out new plans to increase fee revenue or nudge customers to transact additional business with them.
Two Chinese manufacturing surveys showed slight improvements in February but data showed increasing input prices and declining new orders–a warning of additional economic weakening. The February Purchasing Managers’ Index increased to 51.0 on a 100-point scale, from January’s 50.5 number, as reported the China Federation of Logistics & Purchasing. The rival PMI reading by HSBC came in at 49.6, a rise from January’s 48.8. A reading higher than 50 divides an expansion from a contraction.
CVR Energy (NYSE:CVI) recommended its shareholders say no to Carl Icahn’s $30 per share tender offer from his hostile bid because it undervalues the company and appears “opportunistic.” According to Reuters, the company said in a statement that the offer is “inadequate” and doesn’t consider the best interests of either CVR or it shareholders. In February, billionaire Ichan, CVR’s largest shareholder with his 14.54 percent position, said the company needed to be sold as its stock price did not adequately reflect its high profit margins.
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