Financial Biz Recap: Schwab CEO Has GOOD News, U.S. Bancorp SUED By Los Angeles
Here are Tuesday’s top stories:
The Charles Schwab Corporation’s (NYSE:SCHW) Chief Executive Walt Bettinger says that “trading activity weakened” during the quarter, but the company sees other signs of “sustained client engagement”. Active brokerage accounts increased by 7 percent, year-over-year; client assets rose 9 percent; and net interest margin declined by an additional 24 basis points from the same quarter in 2011 to 1.72 percent.
U.S. Bancorp (NYSE:USB) is facing a lawsuit by the City of Los Angeles, as one of its divisions is accused of being one of the city’s biggest slumlords and contributors to blight. Allegations are that the company has taken title to more than 1,500 properties, but “disregarded” its legal duties as owner. For its part, the lender insists that it’s the servicers and not the trustee, who have responsibility over the homes.
The Blackstone Group (NYSE:BX) and KKR & Company, L.P. (NYSE:KKR) are now among other private equity firms starting talks with Chinese authorities to initiate a large amount of renminbi funds, which the firms expect to assist them in winning deals in the country. In an experiment, certain private equity companies are being allowed to raise yuan from investors in Hong Kong, and to eventually finalize deals without first obtaining approval from the authorities.
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