Wells Fargo
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How Can Banks Be Affected By A QE Slowdown?
By Vanina Egea - June 19, 2013 | Tickers: BAC, JPM, WFC
US banks have been recovering from the financial crisis at a good pace. Some are still struggling, but most of the pack is on the growth track and have cleaned their sour balance sheets. But what could happen if the Fed cuts its aggressive quantitative easing scheme? This could seriously hurt some banking stocks in the short-term as interest rates rise. This has already had some impact in the bond more »
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Big Banks Could Mean Big Gains
By Matthew Frankel - June 19, 2013 | Tickers: BAC, C, WFC
Citigroup (NYSE: C) is one of the largest financial institutions in the world, with operations in over 100 countries all around the world. Citigroup gained notoriety as one of the hardest-hit banks during the financial crisis and is one of the reasons the phrase “too big to fail” came into being. Citigroup shares were worth over $550 (split-adjusted) before the crisis, and are now worth about one-tenth of that. After more »
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A Better Option Than Bank of America?
By Dan Moskowitz - June 19, 2013 | Tickers: BAC, C, WFC
Bank of America (NYSE: BAC) has underperformed the market over the past three years, but the stock has soared 68% higher over the past year. The entire financial sector has performed well over the past year thanks to a housing rebound and improving credit. However, many analysts are warning investors to exit their long positions in bank stocks. Should you heed this warning? And is there is a safer option more »
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Citigroup: Strong Currency Headwinds Will Impact its Tier 1 Ratio
By Martin Vlcek - June 19, 2013 | Tickers: C, WFC
Citigroup (NYSE: C) is one of the four largest U.S. money center banks, together with Wells Fargo (NYSE: WFC), JPMorgan Chase and Bank of America.
Citigroup has achieved many huge accomplishments after the 2008-2009 banking crisis, including becoming even better diversified regionally, as well as in terms of its line of outstanding banking products and services in all major market segments of consumer and business banking.
However, ironically, it more »
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JPMorgan Continues to Make Mistakes
By Red Chip - June 18, 2013 | Tickers: BAC, JPM, WFC
Despite a number of mistakes, JPMorgan Chase (NYSE: JPM) has surprisingly been able to maintain its profitability. In 2012, including the $6.2 billion loss in the London Whale case, JPMorgan’s net income increased by 12% to 21.3 billion, its highest profit ever. But despite that number, you shouldn't be fooled into thinking JPMorgan is a good investment.
Over the last year, it has faced such debacles more »
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Terminal Scandal: Fraudulent or Just Unethical?
By Mike Thiessen - June 18, 2013 | Tickers: GS, JPM, TRI, WFC
Bloomberg, LP has landed itself in hot water recently for a scandal involving the use of information gleaned by its reporters from its ubiquitous terminals. Bloomberg reporters had been “spying” on its clients by accessing usage information from the clients’ terminals and using this information to track down stories. This practice angered Goldman Sachs, Inc. (NYSE: GS) and JP Morgan Chase, Inc. (NYSE: JPM), who have complained to Bloomberg. Even more »
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A Rebounding Housing Market will Help this Bank
By Red Chip - June 18, 2013 | Tickers: C, JPM, WFC
The mortgage industry is one of the leading business sectors in the United States. For mortgage service providers, profitability depends on the volume and the prevailing interest rates. In the United States, JPMorgan Chase (NYSE: JPM), Citigroup (NYSE: C), Bank of America and Wells Fargo (NYSE: WFC) are among the leading home-mortgage service providers. Five of the largest banks in the nation have a market share of more than 53 more »
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Berkshire Hathaway's Top 3 Holdings: Are They Worth Investing In?
By Shweta Dubey - June 18, 2013 | Tickers: KO, IBM, WFC
Warren Buffett's Berkshire Hathaway has a totally market capitalization of $284 billion. It focuses on a long-term investing perspective, including publicly traded stocks. Berkshire's portfolio is diversified across a wide variety of sectors. Its top three holdings, as per its recent 13F filing with the SEC, were Coca-Cola (NYSE: KO), Wells Fargo (NYSE: WFC), and International Business Machines (NYSE: IBM).
In this article, I have analyzed these three more »
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Interest Rates Are Squeezing the Life Out of These Banks
By Marie Palumbo - June 17, 2013 | Tickers: BAC, C, JPM, MS, WFC
JPMorgan Chase (NYSE: JPM) complains of “lower deposit margins.” Citigroup (NYSE: C) calls it “spread compression.” I like that term better--you can practically feel the bank getting squished between encroaching interest rates.
It has a lot to do with net interest margin. Banks live by net interest margin. When you take your hard-earned paycheck and deposit it into your local bank, that money doesn’t sit around. The bank uses more »
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Bank Stocks Are Still Cheap After This Year's Gains
By Matthew Frankel - June 15, 2013 | Tickers: BAC, GS, WFC
Wells Fargo (NYSE: WFC), the fourth largest bank in the U.S., has grown tremendously over the past few decades. In fact, over the past ten years alone, Wells Fargo’s total assets have nearly quadrupled, from about $388 billion to over $1.4 trillion. Additionally, Wells Fargo was one of the few major U.S. banks that actually came out of the financial crisis better than it went in more »
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3 Reasons Why You Need to Short These Banks Today
By Marie Palumbo - June 14, 2013 | Tickers: BAC, C, GS, JPM, WFC
Two roads diverged in a yellow wood,
And sorry I could not travel both.Robert Frost didn’t have the stock market in mind when he wrote The Road Not Taken. Yet in 2013, it increasingly reflects a decision you must make. The market is taking a “negative divergence” from economic fundamentals, meaning that the two are heading in opposite directions. Here’s an example.
If you look at the more »
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Higher Rates Mean Higher Returns for These Banks
By Adnan Khan - June 14, 2013 | Tickers: JPM, USB, WFC
Increased volatility and higher interest rates have caused headaches for many banking companies. However, that is not the case for JPMorgan Chase (NYSE: JPM), despite its woes. I believe these banks will benefit from the prevailing interest rate environment. Let’s see how.
Higher yields mean additional returns
The banking industry is highly reliant on interest rates as a source of income. However, banks have little control over the interest more »
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A Regular Fool's Retirement Portfolio: Finance Stocks
By Jason Hall - June 12, 2013 | Tickers: AIG, BAC, BRK-B, BOFI, WFC
When I left my former career in January to work full-time as a writer, including the writing I do here as a Blogger for the Motley Fool, I also rolled over my 401K. Today, I'm starting a series of posts that document the companies that I am investing in, and giving each of you a chance to follow along on this journey. Will you learn from my successes, or more »
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3 Ways to Play the Housing Recovery
By Adnan Khan - June 11, 2013 | Tickers: KBH, SPF, WFC
Fed’s aggressive bond buying is showing some results as the U.S. housing markets begin their recovery. Amid this recovery, I have shortlisted some companies that have significant exposure to the U.S. housing market. I believe these companies are poised to benefit from the housing recovery. Therefore, these stocks are the best way to play the U.S. housing recovery.
The rebounding housing market
U.S. housing is more »
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Analyzing 3 Hot Banking Picks
By Victor Selva - June 11, 2013 | Tickers: BAC, C, WFC
The past twelve months have been positive for financial companies, with finance becoming one of the best-performing industries with a return of 22.1% (DJ US Financials Index) and outperforming Dow Jones Industrial Average return of 14.8%. Key drivers of this strong performance were the improvement of the housing market, low valuation multiples, and market sentiment driven by a bullish market. In fact, Jim Cramer called the banking sector more »
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Billionaire Ken Fisher’s Cheap Stock Picks
By Meena Krishnamsetty - June 11, 2013 | Tickers: AAPL, HBC, JPM, PFE, WFC
Billionaire Ken Fisher, a long-running columnist for Forbes, also runs the asset manager Fisher Asset Management. We track this fund’s activities alongside those of hundreds of hedge funds and other notable investors, using their quarterly 13F filings to help us develop investment strategies; we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year more »
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Billionaire David Shaw’s Cheap Stock Picks
By Meena Krishnamsetty - June 11, 2013 | Tickers: AAPL, XOM, MPC, PFE, WFC
We track quarterly 13F filings from hundreds of hedge funds and other notable investors, including billionaire David Shaw’s large hedge fund D.E. Shaw. While one way to make use of this information is to compile 13Fs and use them to develop investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per more »
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This Bank's Strategy Will Fail
By Marie Palumbo - June 10, 2013 | Tickers: BAC, BBT, C, MS, WFC
Cross-selling sounds like the perfect cure for banks still ailing from the financial crisis. Net interest margins are at significant lows, and banks are trimming expenses to keep profits at meaningful levels. So adding new sales to old customers should be the perfect fix. But – not all banks are created equal. As such, cross-selling won’t work effectively for every bank.
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4 Banks For The Long-Term
By Bill Edson - June 10, 2013 | Tickers: ALFI, C, JPM, WFC
In February, the nation's five largest mortgage banks, Bank of America, Ally Financial (NASDAQOTH: ALFI), JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C), agreed to a $25 billion settlement with the federal government (and 49 state attorney generals) on account of mortgage servicing abuses. Part of the settlement included the mandating of new servicing standards and an independent compliance monitor to enforce the remedy. With more »
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Leading American Banks, a Complete Review
By Vanina Egea - June 10, 2013 | Tickers: C, USB, WFC
The financial sector has been consistently resilient through the last few years. The whole industry has been facing headwinds caused by lower reinvestment rates, the European sovereign crisis and an enhanced regulatory and tax system with a double dip recession. However, with an ongoing recovery in the housing market and companies’ earnings showing momentum, the economy as a whole is helping the banking system recover. In this article I am more »
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