CHARLOTTE, North Carolina (Reuters) - Wells Fargo & Co may have to buy back an additional $1.8 billion in toxic mortgages from outside investors on top of claims it already received, the fourth-largest U.S. bank by assets said in a securities filing on Friday.
Reuters - Wells Fargo & Co may have to buy back an additional $1.8 billion in toxic mortgages from outside investors on top of claims it already received, the fourth-largest U.S. bank by assets said in a securities filing on Friday.
(Reuters) - Wells Fargo & Co on Friday reported higher second-quarter profit on strong mortgage banking income as borrowers continued to refinance their homes at low rates. The nation's fourth-biggest bank said net income was $4.6 billion, or 82 cents a share, compared with $3.9 billion, or 70 cents a share, in the same period a year earlier. The San Francisco-based bank is the largest U.S. mortgage lender. (Reporting By Rick Rothacker in Charlotte, North Carolina; editing by John Wallace)
The Mole submits: The surprise decision by the PBoC to raise rates by 25bps (I’d now expect tomorrow's GDP and CPI numbers to be upside surprises !) led to de-risking across the board and US stocks suffered their biggest setback in 2 months. The dollar (the $ index DXY +1.7 percent) was the main beneficiary as it had its biggest gain in 6 months. Commodities had a knee-jerk move lower with Gold -2.5 percent, Crude -4 percent, and Copper -3 percent.
Wells Fargo just released its third-quarter results. Wells Fargo posted earnings per share of 99 cents per share. Third quarter revenue came in at $20.5 billion. On average, analysts expected the bank to report adjusted earnings per share of 97 cents on revenue of $21.02 billion, according to data compiled by Bloomberg. From the release:
(Reuters) - One of the few businesses working well for the biggest banks these days is the same one that got them in trouble just five years ago: mortgages. Wells Fargo & Co and JPMorgan Chase & Co are both expected to post more than $4.5 billion in profits for the third quarter, an increase of more than 15 percent from last year, according to Thomson Reuters I/B/E/S. Other businesses at big banks will likely benefit from the mini-mortgage boom. ...