Stocks
By Ryan Schuette | 05/14/2012
A fresh round of concerns that Greece may leave the euro zone sent U.S. stock markets into a dizzying tumble Monday. After some lift in recent weeks, the Dow Jones Industrial Average fell 125.25 points to close by end of day at 12,695, along with shares for the nation’s four largest lenders. The deal reportedly involves a Syriza, a leftwing bloc opposed to further austerity measures that may parlay slashes to Greek social services for $170 billion in bailout funds under a package jointly agreed-to by the European Union and International Monetary Fund.
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By Ryan Schuette | 05/04/2012
Mortgage giant Freddie Mac saw $577 in net income over the first quarter, less than $619 million for the same by the fourth quarter last year. The GSE said that its net worth deficit would require a Treasury draw of $19 million, adding that it offset comprehensive income over the first quarter by senior preferred dividends worth $1.81 billion. The company laid claim to more than $114 billion of liquidity in the mortgage market over the first quarter, including $89 billion single-family refinance loans that resulted in an estimated $1.4 billion in aggregate annual interest savings.
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By Ryan Schuette | 05/01/2012
Shares swelled for the nation’s four largest lenders Tuesday, with analysts crediting a rise in construction spending over March for a climb by the stock market to levels not seen in four years. The Dow Jones Industrial Average cleared an important psychological hurdle by rising 65 points to 13,279, the highest in four years. Media outlets and analysts attributed the boon to a leap ahead in confidence for the Chinese and U.S. economies, with a slight rise in construction spending over March responsible for the latter. Construction spending arrived at $171.2 billion.
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By Ryan Schuette | 04/27/2012
Life insurer MetLife announced Thursday that it will exit the reverse mortgage origination business, with plans to sell the division responsible for these loans to Nationstar Mortgage LLC. It was not immediately clear how much Nationstar paid to buy the reverse mortgage portfolio from MetLife. The life insurer also said that it would cease receiving any new reverse mortgage loan applications and registrations. MetLife said that retail banking, including reverse mortgages, accounted for less than 2 percent of operating earnings for the company last year.
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By Ryan Schuette | 03/22/2012
The Senate cleared a bill Thursday that bans bonuses for executives with either of the GSEs and requires mortgage disclosures from senior-level government officials. The bill – the Stop Trading on Congressional Knowledge Act – passed by a count of 96 to 3, according to news outlets, and combines an earlier House version with Senate amendments. Except in certain circumstances, under the law, government officials and their spouses will need to disclose report on and disclose information about their mortgage loans. GSE executives will be eligible only for federal pay grades.
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By Ryan Schuette | 03/06/2012
A steady pace for home prices and sales signals housing recovery, but a disorderly default by any of the euro zone states overseas could choke affordability according to Capital Economics analysts.
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By Ryan Schuette | 02/17/2012
The Dow Jones Industrial Average finished by end of day Friday at a clip just below 13,000 points, lifting stocks and shares for all but one of the four major financial institutions. The jump reportedly marks the highest for the Dow Jones since 2008, just before the worst of the financial crisis, as investors got bullish on another round of bailout votes for debt-saddled Greece. The index closed on a .35-percent hike Friday, up 45.79 points, giving Wells Fargo a 2.37-percent boost to wrap up stocks at $31.09 per share.
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By Ryan Schuette | 02/03/2012
Lawmakers tucked an amendment into a bill passed Friday that prevents executives with Fannie Mae and Freddie Mac from receiving multibillion-dollar bonuses while the two companies linger in federal conservatorship. If reconciled with a bill from the House, the Stop Trading on Knowledge Act would prohibit lawmakers, congressional staff members, and federal officials from the executive branch from trading political intelligence about market activity for financial and personal gain.
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By Ryan Schuette | 02/03/2012
A still-brittle economic recovery picked up steam in January as the private sector added 243,000 jobs, driving unemployment figures to lows not seen in three years. The Labor Department said that the national unemployment rate fell to 8.3 percent, also signaling a fifth straight month for declines in the number of jobless Americans. Construction added 21,000 jobs from December, with gains for nonresidential construction and specialty trade contractors. Financial services lost some 5,000 jobs from last month by comparison.
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By Ryan Schuette | 01/17/2012
The FDIC finalized one rule and proposed another Tuesday that requires systemically large financial institutions to submit resolution plans and undergo annual stress tests, respectively. Under the finalized rule, financial institutions with more than $50 billion in assets will need to craft so-called living wills, or resolution plans, for the FDIC and regulators to follow in the event of collapse. The agency also proposed another rule Tuesday for public commentary on capital adequacy tests, or stress tests, for financial institutions with $10 billion or more in assets, including 23 state non-member banks.
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