Friday, January 6, 2012

Morning roundup: Wells Fargo settles with Maryland attorney general

Here's a look at what's news in banking and finance this morning:

  • In a settlement with Maryland's attorney general, Wells Fargo agreed to make loan modifications and pay $1 million to adjustable-rate mortgage customers of former Charlotte bank Wachovia and Golden West, the Baltimore Sun reports.
  • As an underwriter, Bank of America has a "risky but potentially lucrative role" in a rights issue from Italian bank UniCredit, the Wall Street Journal says. A rights issue is a means of raising capital by allowing existing shareholders to buy more stock at a discount. But should demand lag, Bank of America Merrill Lynch could be stuck with a tab.
  • The bondholder group -- which includes BlackRock and Pimco -- that landed an $8.5 billion settlement from Bank of America over mortgage-backed securities last year now says it will seek a settlement with Wells Fargo, Bloomberg reports.
  • Wall Street is set to gain today after more strong jobs numbers, Reuters says.