Deutsche Bank and UBS Guilty of Fraud, Morgan Stanley Gets FB Penalty: Weekly Financial Biz Recap
Bank of America Corporation (NYSE:BAC) has built up an array of $64 billion worth of mortgages at a minimum six months delinquent but have not yet entered foreclosure, which is more than twice the amount held by its four largest rivals combined. The company’s stockpile of troubled loans were obtained in most part from its 2008 purchase of Countrywide Financial, which was at one time the nation’s biggest mortgage provider. By comparison, Wells Fargo & Co. (NYSE:WFC), the largest domestic mortgage servicer, presently has $15.3 billion of such unpaid loans.
First among global investment banks as to market share for 2012, is JPMorgan Chase & Co. (NYSE:JPM) with 7.6 percent, calculated from preliminary data by Dealogic. However this number is below the 8.1 percent the bank sported in 2011, but it was sufficient for the latest victory over competitors in the fourth consecutive year.
On Wednesday, Western Asset Mortgage Capital Corporation (WMC) said that its board has declared a regular quarterly cash dividend of 90 cents per share for the fourth quarter, and an additional dividend of 22 cents per share. The firm is making the additional dividend to distribute the estimated undistributed taxable income from 2012 net realized gains, along with other tax adjustments. The dividends are payable on January 29th to common shareholders of record as of December 31st, with an ex-dividend date of December 27th.
MetLife (NYSE:MET) is in advanced discussions to acquire the Chilean pension-management unit of Banco Bilbao Vizcaya Argentaria, which has a market value in excess of $2 billion, according to knowledgeable sources, who added that the deal could still founder.
Barclays (NYSE:BCS) and UBS (NYSE:UBS) could soon see their legal travails intensify if Fannie Mae and Freddie Mac follow the advice of an internal report by a federal watchdog that was sent to the mortgage companies’ regulator and reviewed by The Wall Street Journal. The report said that Fannie and Freddie could have lost in excess of $3 billion resulting from the banks’ alleged manipulation of a key interest rate. The unpublished report urges the two to consider suing the banks involved in setting the Libor, adding to the mounting legal problems they already face from insurers, cities, investors and lenders over claims linked to the benchmark rate.
Prospect Capital Corporation (NASDAQ:PSEC) on Thursday increased total commitments to its five year, $650 million revolving credit facility by $35.0 million to an aggregate of $552.5 million. The facility includes an accordion feature allowing Prospect to accept a total amount of $650 million of revolving commitments which the firm anticipates reaching with additional and existing lenders. The new $35 million commitment is from a new lender, bringing the total number of lenders to seventeen. Prospect Capital holds an investment grade Moody’s rating of Aa3.
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