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.
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.
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.
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.
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.
NEW YORK, July 20 (Reuters) – American Express Co (AXP.N: Quote, Profile, Research, Stock Buzz)
posted a 31 percent increase in second quarter profits, beating
analysts’ expectations, as customers spent more on their cards
and the company’s processing revenue jumped.
Average spending on the company’s cards for the quarter
rose 15 percent to $3,767 from the same period a year ago and
the number of outstanding American Express cards rose 6 percent
to 94 million.
A Citigroup presentation on Thursday featured sterling examples of what information designer Edward Tufte calls “chartjunk”: charts that distract from or even conceal the data they are trying to illuminate.
Look at page 6 of the PDF, which is marked 5 on the page of the presentation itself: the bank’s assets have declined by what appears from the chart to be a dramatic amount. The 2007 bar is about 3 centimeters long, while the 2008 bar is roughly 1.8 centimeters long. That’s a 40 percent drop.