Financial Sector Review: Volcker Rule Release Date, BAC’s Foreclosure Rental Program

Bank of America Corp. (NYSE:BAC): The SEC is examining whether some sophisticated, rapid-fire trading firms have used their ties to computerized stock exchanges to gain an unfair advantage over other investors, sources say, the Wall Street Journal reports. Bank of America (NYSE:BAC) will test allowing homeowners at risk of foreclosure to turn over deeds to their houses and sign leases that will let them rent the houses back from the bank at a market rate, the Wall Street Journal reports. Federal Reserve Bank of St. Louis President James Bullard says U.S. monetary policy may be at a turning point and a Fed interest rate increase could come as soon as late 2013, Bloomberg reports.

BAC shares closed at $9.85, up $0.25, or 2.6%, on the day. Its market capitalization is $105.71 billion.

JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), Morgan Stanley (NYSE:MS): Democratic Congressman Barney Frank, one of the co-authors of the Dodd-Frank financial reform bill, said that regulators should issue a final version of the Volcker Rule by Labor Day, according to The New York Times. Dodd-Frank mandated that the Volcker Rule must take effect by July 21, and regulators should clarify whether and how the measure will be enforced after that date if the final version of the rule hasn’t been released yet, the newspaper quoted Frank as saying.

JPM shares closed at $45.16, up $0.51, or 1.14%, on the day. Its market capitalization is $172.39 billion. WFC shares closed at $33.53, up $0.17, or 0.52%, on the day. Its market capitalization is $176.96 billion. MS shares closed at $20.33, up $0.74, or 3.78%, on the day. Its market capitalization is $40.23 billion.

Citigroup Inc. (NYSE:C): The European Commission said it has opened an in-depth investigation into the proposed acquisition of the recorded music business of EMI (NYSE:C) by Universal Music Group (VIVEF). The Commission’s initial market investigation indicated that the proposed transaction may raise competition concerns in the wholesale of physical and digital recorded music in numerous Member States as well as in the European Economic Area as a whole, particularly in light of the merged entity’s high market shares and increased market power. The Commission now has 90 working days, until August 8, to take a final decision on whether the proposed transaction would significantly impede effective competition in the EEA.

The shares closed at $37.13, up $0.23, or 0.64%, on the day. Its market capitalization is $108.83 billion.

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To contact the reporter on this story: Stella Mariz at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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