Deutsche Bank and UBS Guilty of Fraud, Morgan Stanley Gets FB Penalty: Weekly Financial Biz Recap

  Google+  Twitter | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

According to a knowledgeable source, Chief Executive Brian T. Moynihan of Bank of America Corporation (NYSE:BAC) blocked a proposal to reduce the main component of pay for most brokers for next year. The defeated plan would have shrank the so-called grid payout for Merrill Lynch financial advisers by two percent.

Coverage of Hartford Financial Services Group (NYSE:HIG) was initiated Thursday by MKM Partners with a Buy and 12-month price target of $28.  Shares were up modestly in mid-day trading.

The Pittsburgh-headquartered asset management firm Federated Investors (NYSE:FII) will be added to the S&P MidCap 400 GICS Asset Management & Custody Banks Sub-Industry index at the close on December 31st.

BlackRock (NYSE:BLK) and others may shield their funds from a deluge of money that could gush out of domestic banks when a federal guarantee on bank deposits lapses on around $1.7 trillion in the banks. The worry is that cash pouring into the $2.65 trillion money-fund industry will further depress record low yields and could also close some money-market funds to new investors, say sources to the Wall Street Journal.

Are these stocks a buy or sell? Let us help you decide.  Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>

Once bitten, twice shy — Citigroup (NYSE:C) and Bank of America Corporation (NYSE:BAC) are not in on the biggest mortgage profits on record, subsequent to their catastrophic losses during the crash of the housing market, that made them wary of new loans. Scott Simon, the mortgage chief at Pacific Investment Management Co., remarked that, “Loans have never been safer, they’ve never been more profitable. Bank of America is the biggest mystery to us. Now, I get that they got their faces torn off, but this is a different environment.”

“London Whale”, meet J.P. Morgan Chase & Co. (NYSE:JPM), officially, that is. Comptroller Thomas Curry, of the Office of the Comptroller of the Currency, is poised to take a formal action mandating that the firm remedy its lapses in risk controls which permitted a small group of London traders to amass losses in excess of $6 billion in 2012, according to knowledgeable sources who also believe that the Office, which is the main regulator for J.P. Morgan’s deposit-accepting bank, will not initially levy a penalty.

 

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business