For Immediate Release Chicago, IL – October 12, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includethe Citigroup Inc. (C), JPMorgan Chase & Co. (JPM), Bank of the Ozarks, Inc. (OZRK), Fifth Third Bancorp (FITB) and Wells Fargo & Company ( WFC). Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free. Here are highlights from Friday’s Analyst Blog: Bank Stock Roundup Major banking stocks moved higher in the last five trading days reflecting optimism in the market. Though regulatory probes are ongoing, steps taken to resolve litigation issues by banks related to their past business conduct has helped regain investors’ confidence. Some streamlining activities made headlines too. All these generated optimism about bank financials getting some support going forward. Further, banks continued to be eco-friendly with Citigroup Inc. ( C) taking the latest move. In its update, the bank revealed plans to cut its funding pipeline to coal mining companies with the concern of global warming caused by the emission of greenhouse gases. The report stated, “Climate change is a global challenge of tremendous magnitude, and Citi is helping to accelerate the transition from a high-carbon to a low-carbon economy.”
Against the tough industry backdrop, third-quarter earnings of banks are knocking at the door, which would commence next week with JPMorgan Chase & Co. (JPM) and Bank of the Ozarks, Inc. OZRK releasing on Tuesday.
(Read the last Bank Stock Roundup for Oct 2, 2015 )
Recap of the Week’s Most Important Developments:
1. Fifth Third Bancorp ( FITB) has agreed to resolve civil fraud claims related to mortgage loan practices with the settlement amount of $85 million. The U.S. government alleged that in the period from 2003 and 2013, Fifth Third was engaged in “reckless” origination and underwriting of its Federal Housing Administration (FHA) mortgage loans. The bank certified that about 1,400 such FHA loans were in compliance with the requirements of the U.S. Department of Housing and Urban Development (HUD) and hence stood eligible for FHA insurance (Read more: Fifth Third Resolves Faulty Mortgage Suit; to Pay $85M ).
2. Wells Fargo & Company ( WFC) has come under the regulatory scanner of the Consumer Financial Protection Bureau (“CFPB”). However, it has been notified that the Wall Street bigwig has been facing CFPB investigation since the past one year. While no particular reason for investigation into Wells Fargo’s practices has come forward till now, CFPB is likely to examine the bank’s payment processing procedures and steps taken to help distressed borrowers. Further, whether the investigation will culminate into any enforcement action or settlement remains uncertain. However, an action, if any, will considerably impair the fragmented private student loan market, that likely has less than 10 players.
3. The city of Los Angeles has reportedly dropped its discriminatory lending charges against Citigroup. However, the bank’s earlier plea to dismiss the same lawsuit was rescinded by U.S. District Judge – Otis Wright II in June 2014. Though the court filing did not provide clarity on the reason for the dismissal of lawsuit, earlier filings state that lawyers of Citigroup had raised questions over the limited relevance of U.S. Fair Housing Act (the lawsuit claimed violation of FHA) in this matter, since the act was aimed at providing fair housing only. Notably, Los Angeles had filed a lawsuit against Citigroup in 2013, accusing the bank of engaging in biased lending practices since 2004. The city claimed that the bank provided restricted as well as overcharged (higher fees and interest rates) loan offerings to targeted minority borrowers.
4. In an update to its Environmental & Social Policy Framework, Citigroup revealed that it is set to cut its funding pipeline to coal mining companies. The report stated, “Climate change is a global challenge of tremendous magnitude, and Citi is helping to accelerate the transition from a high-carbon to a low-carbon economy.” It further highlighted, “Citi's credit exposure to coal mining companies has declined materially since 2011. Going forward, we commit to continue this trend of reducing our global credit exposure to coal mining companies.” The primary cause of concern related to coal is global warming caused by the emission of greenhouse gases (Read more: Why is Citi Cutting Finance to Coal Mining Companies? ). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term. Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons. Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today. Find out What is happening in the stock market today on zacks.com. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CITIGROUP INC (C): Free Stock Analysis Report JPMORGAN CHASE (JPM): Free Stock Analysis Report BANK OZARKS (OZRK): Free Stock Analysis Report FIFTH THIRD BK (FITB): Free Stock Analysis Report WELLS FARGO-NEW (WFC): Free Stock Analysis Report To read this article on Zacks.com click here.
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