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Sep 13, 2011

Investing in cost-cutting banks

NEW YORK, Sept 13 (Reuters) – Three years after the
financial crisis slammed the global financial system, banks are
still trying to put tough times behind.

An aggressive new round of job reductions should lower
costs and help the bottom line. Major banks have recently
announced they are eliminating some 100,000 jobs. (For more
details, please click on [ID:nL5E7KD21E])

Sep 1, 2011

BNY Mellon CEO Kelly steps down

BOSTON/NEW YORK, Aug 31 (Reuters) – Bank of New York
Mellon’s (BK.N: Quote, Profile, Research, Stock Buzz) Chief Executive Robert Kelly stepped down in a
surprise move, because of what the company said was
“differences in approach to managing the company.”

BNY Mellon, one of the largest trust and custody banks, did
not elaborate on why Kelly, 57, was stepping down. The bank did
say the decision was a mutual agreement with the bank’s board.
A biography still posted on BNY Mellon’s website noted that
Kelly “was named one of America’s Best CEO’s for 2009″ by
Institutional Investor magazine.

Aug 22, 2011

Bank of America shares fall amid legal, capital woes

NEW YORK (Reuters) – Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz) shares fell nearly 8 percent on Monday, reaching their lowest level since March 2009, as investors fretted the bank may need to raise some $50 billion of capital and worried about potential additional mortgage lawsuit payouts.

The cost of insuring the company’s debt against default also jumped.

In a note to clients, a Jefferies strategist outlined how much capital Bank of America would need to raise to meet new requirements.

Aug 10, 2011

Capital One bulks up U.S. cards with HSBC deal

NEW YORK/HONG KONG, Aug 10 (Reuters) – Capital One
Financial Corp (COF.N: Quote, Profile, Research, Stock Buzz) struck a deal to buy HSBC’s (HSBA.L: Quote, Profile, Research, Stock Buzz)
U.S. credit card arm for $2.6 billion more than the face value
of the loans, the latest in a string of acquisitions for the
U.S. bank.

The deal gives Capital One $30 billion of additional
assets, which it needs because of a separate acquisition that
will leave it with $80 billion of new deposits.

Aug 7, 2011

Debt issuers brace for impact from US downgrade

NEW YORK, Aug 7 (Reuters) – A downgrade of United States’
top-tier credit rating has Wall Street scrambling to figure out
the knock-on effects for the financial system, from mortgages
to banks to markets that rely on U.S. Treasuries for
collateral.

The immediate effects of the Standard & Poor’s downgrade of
the country’s AAA credit rating late on Friday are likely to be
modest, largely because it was expected and already at least
partly discounted, experts said.

Aug 7, 2011

Wall Street braces for impact from downgrade

NEW YORK (Reuters) – A downgrade of United States’ top-tier credit rating has Wall Street scrambling to figure out the knock-on effects for the financial system, from mortgages to banks to markets that rely on U.S. Treasuries for collateral.

The immediate effects of the Standard & Poor’s downgrade of the country’s AAA credit rating late on Friday are likely to be modest, largely because it was expected and already at least partly discounted, experts said.

Aug 5, 2011

Wells Fargo to pay $590 million in Wachovia suit

NEW YORK (Reuters) – Wells Fargo & Co plans to pay $590 million to settle a class action lawsuit regarding Wachovia preferred securities and debt, the company said on Friday.

The 2009 class action case was filed in a federal court in New York City on behalf of buyers of certain Wachovia bonds and preferred securities. Those buyers alleged that Wachovia misrepresented its residential-mortgage holdings in offering documents during the lead-up to the financial crisis.

Aug 4, 2011

BNY Mellon imposes fee on rapidly growing deposits

NEW YORK (Reuters) – Bank of New York Mellon Corp told some of its biggest depositors this week it does not want their money.

BNY Mellon said it is charging a fee to big corporate and asset management clients that deposit more money than average, because it has been overwhelmed by deposits.

Jul 26, 2011

T. Rowe reports stronger earnings as assets rise

BOSTON/NEW YORK, July 26 (Reuters) – T. Rowe Price
(TROW.O: Quote, Profile, Research, Stock Buzz), one of the largest U.S. publicly traded asset
managers, reported higher quarterly earnings on Tuesday as
demand for its top-performing portfolios increased.

The Baltimore-based company said net income for common
shareholders climbed to $203.8 million or 76 cents per share
for the second quarter that ended June 30, from $157.8 million
or 59 cents per share in the same quarter last year.

Jul 21, 2011

Analysis: Banks’ efficiency drive a prelude to amputations

NEW YORK (Reuters) – Banks are dieting now, but surgery is next.

A raft of banks have announced cost-cutting measures in the last week as loan growth proves tepid and trading slow. Wells Fargo said it plans to cut costs by $6 billion a year by the end of 2012, while Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) said it will cut $1.2 billion. Bank of America said it is working on a big cost-saving plan whose details will be revealed in October.

But the announcements are likely a prelude to banks rethinking their businesses much more seriously as they wrestle with weak loan demand as well as new capital requirements and tougher regulations.

    • About Dan

      "Dan Wilchins oversees a team of reporters covering U.S. commercial banks, investment banks, and insurance companies. Based in New York, he has also covered securitization, derivative markets, and corporate bonds."
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