Wednesday, March 24, 2010

Financials $BAC $WFC $DB $MS News!!!

·         BAC – the co is expected to start reducing mortgage principle balances according to a report on Reuters; will on Wednesday announce plans to start forgiving mortgage loan principal for troubled homeowners who owe more than 120 percent of their home's value or are battling ever-expanding "negative amortization" loans.  Reuters 

·         BAC – the co’s CEO is traveling through China this week and makes comments.  Moynihan says he wants to expand further in China; says happy w/its CCB stake.  Moynihan said BoA enjoyed strong ties with China Construction Bank and was not looking to buy into another Chinese lender.  Reuters

·         White House foreclosure plan may exacerbate the housing downturn by spreading the foreclosure crisis over several years according to a report from federal investigators – Bloomberg

·         WFC – GMAC agreed to sell its U.S.-based factoring business to Wells Fargo – Bloomberg 

·         Commerzbank AG, Germany’s second- largest bank, expects to post a pretax profit for the first time since 2008 in the first quarter after trading results improved.  “January was a very successful month for Commerzbank,”  Bloomberg

·         Deutsche Boerse rose in European trading after the company announced plans to raise cost savings goal (Reuters)

·         DB – Deutsche Bank reits goal of achieving 25% ROE over the cycle; Doesn't See Major 2010, 2011 Writedowns; Repeats Sees EUR10B Pre-Tax Profit In 2011 – Reuters/DJ

·         Man Group shrs slipped initially in European trading after the hedge fund firm said assets under management have fallen further to $39.1 billion, as clients continued to withdraw their cash (Reuters) 

·         Lloyds of London - reports highest profit ever  - Lloyd's of London said its 2009 pretax profit was 3.87 billion pounds ($5.80 billion), up from 1.9 billion in 2008 (Reuters)

·         ICAP says it expects profit this year to be inline w/forecasts – Bloomberg

·         MF shrs up after hrs on Corzine announcement......two components to press release: 1) names former GS chief/NJ gov Corzine as CEO; 2) sees revs $235-245MM (vs. St $260MM)....says liquidity/capital will be flattish Q/Q

·         Mortgage credit - Summary Of Subprime, Alt-A, Prime Jumbo - Non-agency performance data in February did not have any major surprises. Both prepays and defaults decreased, while severities were roughly flat. The proportion of short sales among total liquidations increased from January, for prime and subprime. Delinquencies showed no letdown in February, with the 90+ bucket continuing to rise rapidly, but the rest of the buckets were stable. Overall, 60+ delinquencies are at 46% for subprime, 8.5% for prime, 31% for Alt-A and 43% for Option ARMs. Months spent in foreclosure before liquidation/REO continued to increase, while months spent in REO before liquidation was roughly flat.   JPMorgan’s Edward J Reardon 

·         Housing – more cities seeing double dip in prices - Twelve U.S. cities, including Boulder, Colorado, and Providence, Rhode Island, are showing extended declines in housing values, reversing signs of a sustained recovery last year, according to – Bloomberg

·         MBI/Ackman – the HF managers short position against MBI discussed in a new book/Bloomberg article out this morning.  “Almost five years before the worst financial crisis in decades, Bill Ackman made a prescient bet against MBIA Inc., writes Bloomberg News reporter Christine Richard in “Confidence Game: How a Hedge Fund Manager Called Wall Street’s Bluff”  Bloomberg

·         Student lending business – AP article updates on the industry….nothing really incremental….”Banks and other private lenders are about to lose a $70 billion-a-year student loan business” 

·         MS - Morgan Stanley and Mitsubishi UFJ are still struggling to finalize details of their joint operations in Japan and have yet to sign a contract on the deal – FT    

·         CBG – Barron’s had a cautious article on the company 

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