Deutsche Bank and UBS Guilty of Fraud, Morgan Stanley Gets FB Penalty: Weekly Financial Biz Recap
Bank of America Corporation (NYSE:BAC) and Citigroup (NYSE:C) get the thumbs-up from Meredith Whitney who is currently advising the purchase of banks stocks — quickly — according to CNBC. Whitney successfully called the subprime mortgage crisis and has been bearish on banks for awhile, saying back in the summer that Wall Street would lose some 50,000 jobs in future months. However, things have changed in her eyes as she looks towards March when the Federal Reserve will post the results of its CCAR stress tests which she believes will indicate that the banks are adequately capitalized.
JPMorgan Chase & Co. (NYSE:JPM) said Tuesday that Kevin Watters would be appointed chief executive of Mortgage Banking. Prior to this, Watters ran Mortgage Origination and headed Customer Experience across Mortgage Banking, having been with Chase and its predecessor firms for 13 years.
On Tuesday, the Securities and Exchange Commission charged TheStreet, which operates the website TheStreet.com (NASDAQ:TST), with filing false financial reports throughout the year 2008 by posting revenue from fraudulent transactions at a subsidiary it had bought the previous year. Gregg Alwine and David Barnett, co-presidents of the subsidiary, are alleged to have entered into sham transactions with friendly counterparties that had little or no economic substance.
American International Group (NYSE:AIG) has raised $6.45 billion from the divestiture of its remaining interest in AIA Group, pricing shares in the top half of the range. On Tuesday, AIA reported that AIG sold 1.65 billion shares at HK$30.30 each.
The United States Federal Housing Administration is poised to divest more than 40,000 bad mortgages in 2013, through which to fortify its insurance fund, after conceding that it could require a Treasury Department subsidy for the first time in its 78-year history. Meanwhile, hedge funds and private-equity companies are betting on the delinquent home loans being sold, as the agency steps up debt sales to avert a bailout and deter foreclosures. One in particular, Bayview Financial, a firm backed by The Blackstone Group (NYSE:BX), paid as little as 26 cents on the dollar for the FHA loans at auction.
Annaly Capital Management’s (NYSE:NLY) board has declared the fourth quarter 2012 common stock cash dividend of 45 cents per common share, which is payable January 29th, to common shareholders of record on December 28th. The ex-dividend date is December 26th.
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