The Zacks Analyst Blog Highlights: Citigroup, JPMorgan Chase, Wells Fargo, Bank of America and U.S. Bancorp

For Immediate Release

Chicago, IL – November 17, 2014 – 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 include the Citigroup Inc. (C-Free Report), JPMorgan Chase & Co. (JPM-Free Report), Wells Fargo & Company (WFC-Free Report), Bank of America Corp. (BAC-Free Report) and U.S. Bancorp (USB-Free Report).

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

Efforts by major banks to resolve litigation and probes pertaining to their business conduct remained the key trend over the last five trading days. As part of the widespread investigation by the U.S., British and Swiss regulators into alleged foreign exchange (:FX) market manipulation, five major global banks were fined $3.4 billion for their misdoings. This resulted in an overall pessimistic mood in the banking sector.

Nonetheless, banks continued with their restructuring activities with the primary aim to boost operational efficiency. Such efforts were able to offset negative investor sentiments related to FX fines to some extent.

(Read last to last week’s developments here: Bank Stock Roundup for Nov 7, 2014)

Recap of the Week’s Most Important Developments:

1. In a major blow to the global financial institutions, the U.S., British and Swiss regulators fined Citigroup Inc. (C-Free Report), JPMorgan Chase & Co. (JPM-Free Report), The Royal Bank of Scotland Group plc, HSBC Holdings plc and UBS AG an aggregate amount of $3.4 billion for alleged FX market rigging. The U.S. Commodity Futures Trading Commission (:CFTC), the U.K. Financial Conduct Authority (:FCA) and the Swiss Financial Market Supervisory Authority (:FINMA) entered into settlements with these banks. (Read More: Another Blow to Global Banks: Fined Billions for FX Manipulation)

2. In tune with its efforts to focus more on private student lending business, Wells Fargo & Company (WFC-Free Report) is set to sell $8.5 billion of its Federal Family Education Loan Program (:FFELP) loans to Navient Corporation. Notably, the companies did not reveal the terms of the transaction.

The deal is expected to close via a series of transactions by the end of 2014. The transaction comprises entire loans originated under the FFELP, before the program ended in 2010.

Wells Fargo stated that the sale of student loans is immaterial to its earnings. As of Sep 30, 2014, Wells Fargo EFS served 1.3 million customers with $11.9 billion of balance outstanding. On Navient’s part, the deal will undoubtedly enhance its business that started operating independently as a loan management, servicing and asset recovery company following the separation of Sallie Mae into two distinct publicly-traded entities in Apr 2014.

Separately, Wells Fargo also cancelled its proposed sale of mortgage servicing rights (:MSRs) to Ocwen Financial Corp. The deal was announced in Jan 2014.

The cancellation followed, superintendent of New York’s Department of Financial Services (:DFS), Benjamin Lawsky’s restriction on the proceedings of the cash-deal in Feb 2014. Driven by concerns over the mortgage servicer's ability to handle the increase in servicing volume, Lawsky halted the Ocwen deal indefinitely. Therefore, Ocwen put the deal on hold at regulator’s request and was cooperating to resolve his concerns regarding its ability to service portfolios.

3. Major banking bellwethers like Bank of America Corp. (BAC-Free Report) and U.S. Bancorp (USB-Free Report) settled a Securities Class Action lawsuit for $69 million. Investors accused both these banks of failing their responsibility as trustees for securities backed by Washington Mutual Inc. home mortgages from 2005 to 2007. Notably, the settlement awaits the federal judge’s approval in Manhattan before it becomes effective. (Read More: BofA and U.S. Bancorp Settle Lawsuit for $69M).

4. In a bid to reduce expenses and improve efficiency, JPMorgan intends to slash another 3,000 jobs in its Consumer and Community Banking (:CCB) segment by the year end. At an industry conference in Boston, the bank disclosed its plan to cut 7,000 jobs in its mortgage-banking segment and 4,000 in other divisions of the CCB arm, including the merchant services, cards and auto units by end-2014. Notably, earlier in February, the company had announced the curtailment of 6,000 jobs in the mortgage banking unit and 2,000 in rest of the CCB unit. (Read More: JPMorgan to Cut Jobs in Consumer & Community Banking Unit)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on C - FREE
Get the full Report on JPM - FREE
Get the full Report on WFC - FREE
Get the full Report on BAC - FREE
Get the full Report on USB - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on C

Read the analyst report on JPM

Read the analyst report on WFC

Read the analyst report on BAC

Read the analyst report on USB


Zacks Investment Research