Large-cap bank have seen a major boost from the release of loan-loss reserves over the past several years, and a return to typical provisioning for reserves could have quite a negative effect on earnings.
A refinancing boom that buoyed Wells Fargo's earnings in late 2012 and the first half of 2013 has petered out as rates rose in the second half of the year, sharply cutting at the bank's mortgage origination activity.
Ocwen Financial, the nation's fourth-largest collector or "servicer" of mortgage debt, reached a settlement with regulators to pay more than $2 billion to mortgage borrowers over alleged "significant and systemic misconduct" in servicing their loans.
Banks are ramping up the marketing of home-purchase loans to borrowers as refinancing volumes plummet, but there are still few signs that they are ready to ease lending standards materially.
Ocwen Financial, one of the nation's largest collectors of mortgage debt, is considering branching out into other types of consumer debt collection.
Five years after the Lehman Brothers bankruptcy, JPMorgan Chase CEO James Dimon has quite a bit to be proud of, but the nation's biggest bank is facing a major political and regulatory onslaught at a late stage of the banking industry's recovery.
The long, rough ride for CEO Brian Moynihan isn't over, but all decks should clear for Bank of America by the end of 2015. Investors are pleased with Moynihan, sending Bank of America's shares up 24% this year through Wednesday's close at $14.32, after the shares more than doubled during 2011.
Five years from the peak of the credit crisis, it's clear that Wells Fargo has gotten its cake and eaten it too. The bank was able to double in size from its early 2009 acquisition of Wachovia, while avoiding the type of mortgage mess inherited by Bank of America through its purchase of Countrywide in 2008.
Enough with the tapering talk already. Considering the state of the economy, it's going to be a long time before it happens.
Bank of America CFO Bruce Thompson faced questions from investors this week over a recent ruling that some believe may persuade a judge to reject an $8.5 billion settlement the bank reached with 22 institutional investors over mortgage backed securities liability.