General Motors is paying $3.5 billion in cash to buy subprime auto lender AmeriCredit, a move that will once again give the automaker its own finance arm. General Motors will pay $24.50 a share for AmeriCredit, which represents a 24 percent premium over Wednesday’s closing price. Get the full story »
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Northern Trust profit, revenue fall
Northern Trust Corp posted higher-than-expected second-quarter profit as servicing fees and foreign exchange income increased from the first quarter. Chicago-based Northern Trust, whose services include asset management and record-keeping, reported a profit of $199.6 million, or 82 cents per share, down from $314.2 million, or 95 cents, a year earlier.
FDIC $250K limit made permanent
From the Baltimore Sun | As part of the Wall Street Reform signed into law this morning by President Obama, federal insurance coverage on deposits at banks and credit unions will be permanently raised to $250,000.
July 20, 2010 at 12:30 p.m.
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Filed under: Banking, Housing, Mortgages, Policy, Politics, Real estate Slow start for second mortgage HAMP program
Only four of the eight largest mortgage servicers have committed to participate in a government-sponsored, yet voluntary, program designed to aid troubled homeowners with second mortgages, new data released Tuesday shows.
Of the four servicers participating in the second lien modification program — Bank of America, CitiMortgage, JPMorgan Chase and Wells Fargo Bank — only Bank of America and Chase were “operationally ready” and extending modification offers to consumers this spring, the Treasury Department said Tuesday. Get the full story »
July 19, 2010 at 3:46 p.m.
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Filed under: Banking, Investing, Policy, Politics, Regulations U.S. SEC sees staff beef-up to enforce new law
The broadest shake-up in U.S. financial services law since the Great Depression will likely require the Securities and Exchange Commission to beef up its staff with 800 new positions, the SEC’s chief said in prepared remarks on Monday. Get the full story »
Lenders give ShoreBank more time
From Crain’s Chicago Business | The Wall Street firms that have pledged $150 million to rescue ShoreBank have extended their agreements three weeks to give the South Side lender more time to secure government bailout funds.
Earnings up, shares down for Citi, BofA
Bank of America and Citigroup posted better-than-expected quarterly earnings on lower credit losses, but their shares fell as the banks highlighted the challenge of boosting revenue in a stagnant economy.
As with JPMorgan Chase & Co., which reported Thursday, the banks’ investment banking profits were down, a bleak sign for Goldman Sachs Group Inc. and Morgan Stanley, whose results are due next week. Get the full story »
New BofA account free, but no tellers or paper
Bank of America is rolling out nationwide a bank account with no fees. Just don’t ask for a paper statement and stay out of the teller line. The nation’s largest retail bank said Thursday its new checking account, aimed at the iPhone set, is free of fees provided the customer requests electronic statements and prefers automated tellers. Get the full story »
JPMorgan Chase earnings beat expectations
JPMorgan Chase & Co posted higher second-quarter earnings on Thursday, beating analysts’ expectations, after setting aside less money for loan losses. The second-largest U.S. bank by assets said earnings jumped to $4.8 billion, or $1.09 a share, from $2.7 billion, or 28 cents a share, in the year-earlier period. Get the full story »
Bernanke: Lending to small business vital
Boosting credit to struggling small businesses is vital to keep a tepid U.S. recovery on track but wary banks can’t be forced to lend from their bountiful reserves, Federal Reserve officials said Monday.
Fed Chairman Ben Bernanke underlined the need for companies — many working their way back to health from the deep recession — to be able to get loans when they need them to expand and to hire. Get the full story »
FDIC gets unfettered ability to probe banks
Federal bank regulators have agreed to give the Federal Deposit Insurance Corp. unlimited authority to investigate banks, clarifying the agency’s power that was in question during the financial crisis.
The FDIC’s board on Monday approved the agreement between the insurance agency and regulators at the Federal Reserve and Treasury Department. It clearly spells out the FDIC’s authority to make special examinations of banks. It was approved 5-0. Get the full story »
Illinois Dems back TARP funds for ShoreBank
From TheHill.com | Illinois Democratic Reps. Bobby Rush, Danny Davis, Jesse Jackson Jr. and Jan Schakowsky have asked the Treasury Department to tap remaining TARP funds to help ShoreBank.
Credit-card debt drops 10.5% in May
Paying down credit-card debt appears to be on the upswing.
Consumers cut their outstanding revolving debt -– overwhelmingly credit cards -– by an annualized, seasonally adjusted rate of 10.5 percent in May, the Federal Reserve reported Thursday. That’s on the heels of an 11.8 percent drop in April. Revolving credit is a line of credit allowing consumers to pay all or part of an outstanding balance, and, as the balance is paid, it becomes available to spend again as credit. Get the full story »
Discover buys back warrant, ends U.S. stake
From Bloomberg News | The U.S. government no longer has a stake in Riverwoods-based Discover Financial Services after the company bought back a warrant issued to the U.S. Treasury Department’s bank-bailout program for $172 million. The 10-year warrant conveyed the right to buy 20.5 million common shares and helped it gain access to $1.2 billion in federal rescue funds.
HSBC hit with two class-action lawsuits
Two HSBC units were hit with two federal class-action lawsuits last week claiming they’ve sold confusing credit-card “payment protection” plans to senior citizens, the unemployed and disabled residents in New Jersey and Pennsylvania who might not be eligible for the coverage plans.
The lawsuits against HSBC Bank USA and HSBC Card Services Inc., which is based in Illinois, were filed July 2 in U.S. district courts in Pennsylvania and New Jersey, and seek class-action status. The suits claim that HSBC, whose U.S. consumer finance unit is headquartered in Mettawa, marketed such “payment protection” products called “Personal Account Protection,” “Personal Account Protection Elite” and “Account Secure Plus” to credit-card customers.
HSBC declined to comment. Get the full story »
