Editor’s Note: Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co (NYSE:WFC)
Bank of America Corp (NYSE:BAC) is poised to become the top seller of U.S. structured notes for the second straight year, issuing its highest proportion ever of securities tied to stocks. The bank leads with $3.28 billion of issuance, of which 93 percent, or $3.04 billion, is linked to equities. Morgan Stanley is second with $2.93 billion of total sales. Bank of America Corp (NYSE:BAC) has been helped by shrinking credit risk and surging stock markets, with the Standard & Poor’s 500 Index climbing 19 percent this year. The lender’s large network of financial advisers also boosts the size of its deals, which averaged $37.7 million in 2013, while competitors use electronic platforms to issue more notes in smaller amounts.
JPMorgan Faces Criminal Probe Over Mortgage Bonds (ABC News)
The U.S. Justice Department is investigating JPMorgan Chase & Co. (NYSE:JPM) over mortgage-backed investments the bank sold in the run-up to the financial crisis. The New York-based bank said in a regulatory filing that it is responding to investigations by the civil and criminal divisions of the U.S. Attorney’s office for the Eastern District of California. In May, the civil division informed JPMorgan Chase & Co. (NYSE:JPM) that it had “preliminarily concluded” that the bank had violated federal securities laws in connection with certain mortgage-backed investments it sold from 2005 to 2007.
Wells Fargo Wins Trial Over Securities-Lending Plan Losses (2) (Businessweek)
Wells Fargo & Co (NYSE:WFC) was cleared of accusations it misrepresented a securities-lending program to Blue Cross Blue Shield of Minnesota and other institutional investors and a demand it pay for $8.2 million of losses. A federal jury in St. Paul, Minnesota, today returned a verdict rejecting allegations in the plaintiffs’ 2011 lawsuit that the bank marketed a risky program as safe, leading to losses the bank blamed on the financial crisis alone. “The verdict validates that Wells Fargo was focused at all times on serving our clients’ interests,” the lender said in a post-verdict statement. Wells Fargo & Co (NYSE:WFC) sought “to achieve the best results for all participants in the securities lending program during extremely difficult economic conditions.”
Eldersburg Bank of America robbed Thursday (Baltimore Sun)
The Eldersburg Bank of America Corp (NYSE:BAC) on Ridge Road was robbed at gunpoint Thursday morning, according to the Carroll County Sheriff’s Office. The Sheriff’s Office announced in a news release that it is seeking information regarding the identity and location of a black male in his 30s, approximately 6 feet 4 and weighing about 220 to 250 pounds who is a suspect in the robbery. At about 9:20 a.m., the suspect entered the bank wearing a black and orange baseball cap, white T-shirt, gray sweatshirt, blue jeans and black shoes. He brandished a handgun and demanded money, according to the Sheriff’s Office.
JPMorgan Chase to lay off 730 in San Diego (U-T San Diego)
JPMorgan Chase & Co. (NYSE:JPM) said Thursday it plans to lay off 730 San Diego workers from its loan-servicing business as home refinances and foreclosures dry up. The local layoffs, to be completed by 2014, are part of a national plan announced six months ago by JPMorgan Chase & Co. (NYSE:JPM) to cut 15,000 jobs from its division that manages and receives borrowers’ mortgage payments. The layoff is the largest workforce reduction in San Diego County so far through 2013.
Wells Fargo donates $15,000 to Habitat (The Ranger)
In a returning partnership, Wells Fargo & Co (NYSE:WFC) — through its Housing Foundation — has awarded $15,000 to Habitat for Humanity Wind River Country, and the Wells Fargo Riverton team will support the organization with volunteers. The awarded funds will go toward construction of the upcoming home to be built in Riverton for a low-income family. The home will be built at 310 N. 14th St. E. for a single mother and her three children. The house will be Habitat for Humanity’s 16th since 1997.
