Citigroup granted more than 18 million stock options to 15 senior executives, an award that could handsomely increase their compensation if the slowly recovering bank’s share price rises. Get the full story »
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Allstate sues JPMorgan over mortgage securities
Insurer Allstate Corp. sued JP Morgan Chase & Co. over more than $700 million in residential mortgage-backed securities — the latest to allege that a bank misled investors on the quality of mortgages underlying securities.
In the suit, filed Tuesday in state court in New York City, Allstate said JP Morgan and its entities sold Allstate a “toxic mix of loans given to borrowers that could not afford the properties” while telling Allstate it was buying a safe security. Get the full story »
Supermarket banking grows in Chicago
Chicagoans like doing their banking at the supermarket.
Nationally, the number of in-store bank branches and the deposits they hold are falling, but those numbers continue to edge up in Chicago, according to a newly released study by trade publication SNL Financial. Get the full story »
ATMs at train stops: Fifth Third’s in, BofA’s out
It’s Fifth Third in, Bank of America out, at CTA stops around Chicago.
Fifth Third Bank said it has been awarded the opportunity to install 63 automated teller machines in local CTA stops, giving the Cincinnati-based bank the biggest presence on the Chicago area’s train system. Installation of nearly all of the 63 have been completed in the past two months, Fifth Third said.
The number of ATMs at CTA stops has grown steadily since they were introduced in the system in 2003. Get the full story »
Bank of America to close some branches
From Bloomberg News | Bank of America Corp., the biggest U.S. lender by assets, will close some retail branches this year and try to boost revenue from remaining locations by offering investment advice by videoconference, a company manager said.
Jordan Co. eyes Vietnam; Groupon director touts Dropbox
Jordan Co., the private equity firm run by Chicago businessman John “Jay” Jordan, already does business in more than 30 countries, but is planning to re-enter India and is looking at investments in Vietnam.
Jordan, who serves on the boards of Lyric Opera and the Art Institute of Chicago and is a trustee of the University of Notre Dame, also told the Kellogg School of Management Private Equity and Venture Capital Conference on Wednesday that he expects 2011 and 2012 to be “extremely active years” for both buying and selling businesses, following a “fairly robust” 2010 but a “very slow” 2009. Get the full story »
Treasury receives $25.6M from Wintrust warrants
The government has received $25.6 million after selling warrants it held in Illinois-based Wintrust Financial Corp., the latest move to recoup the costs of the $700 billion financial bailout. Get the full story »
CEO says Northern Trust takeover unlikely
The chief executive of Northern Trust Corp., which has been mentioned as a possible takeover target, said chances are “quite good” that Chicago’s biggest locally headquartered bank will remain independent.
Speaking Tuesday before the CFA Society at the Standard Club in Chicago, CEO Frederick Waddell fielded a question from the audience about whether the company might be an acquisition target. Through much of 2010, its stock underperformed and its key U.S. rivals dwarf Northern in a major business segment. Get the full story »
Discover to buy Allstate bank deposits
Allstate Corp. and Discover Financial Services said they had entered an agreement in which Discover will buy substantially all of Allstate’s bank deposits.
The companies called the deal a “multiyear distribution and marketing agreement.” As part of the agreement, Allstate agents and affiliates will offer personal savings and money-market accounts as well as other financial services to their customers through Discover. Get the full story »
U.S. to auction Wintrust warrants Tuesday
The government says it will auction warrants it holds for Illinois-based Wintrust Financial Corp. on Tuesday in the latest effort to recoup the costs of the $700 billion financial bailout. Get the full story »
Community First Bank-Chicago seized
The first bank failure in Illinois in 2011 came Friday when Community First Bank-Chicago was closed by state banking regulators, the Federal Deposit Insurance Corp. said.
Community First Bank has only one branch, at the intersection of Western Avenue and Howard Street. The FDIC said the branch would reopen Saturday as part of Northbrook Bank and Trust Co.
As of Dec. 31, Community First Bank-Chicago had approximately $51.1 million in total assets and $49.5 million in total deposits, the FDIC said. The regulator estimates that the cost of the failure its insurance fund will be $11.7 million.
asachdev@tribune.com
Bank of America plans unit to handle toxic loans
Bank of America appointed on Friday a new foreclosure and loan modifications czar, and created a new unit to oversee problem home loans in a bid to sort out its on-going foreclosure issues, becoming the first large U.S. bank to do so.
The new unit creates a seventh major division at the bank reporting directly to Chief Executive Brian Moynihan, an indication that the largest U.S. mortgage servicer is attempting to be more aggressive in resolving its problem mortgage loan portfolio. Get the full story »
Ally reportedly picks IPO underwriters
Ally Financial, the former General Motors finance arm that was bailed out by U.S. taxpayers, has selected four investment banks to handle an initial public stock offering.
People familiar with the plans say the stock sale will be led by Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley. The people spoke Friday on condition of anonymity because they were not authorized to speak publicly about the plans. Get the full story »
Jamie Dimon wants some R-E-S-P-E-C-T
JPMorgan Chase CEO Jamie Dimon in Davos. (AP)
What’s eating Jamie Dimon? At last week’s World Economic Forum in Davos, Switzerland, the JPMorgan Chase chief executive once again lambasted the media and politicians for portraying all bankers as greedy evil-doers.
It was at least the 12th time since the start of the financial crisis that Dimon has complained about Wall Street critics painting all bankers as cut from the same cloth. But the timing of his latest outburst seemed odd. Get the full story »
