Friday, August 17, 2012

Bank of America growing more like Wells Fargo?

Welcome to the morning roundup. Here's a look at what's news in banking and finance.

BofA becoming Wells? Could Bank of America be becoming more like Wells Fargo? That's what Motley Fool analysts discuss in a new video, after a note from Bruce Berkowitz making the comparison. Motley Fool says BofA is trending toward Wells by focusing more on retail banking, but says there's a definite reason why Wells is trading at three times its valuation.

Home Depot usurps BofA. Bank of America has ceded its No. 31 spot in the S&P 500 by market cap to Home Depot, according to a report in Forbes. The hardware chain's stock has gained 33 percent this year, and its shares sit at $56.31. The Charlotte bank's stock has grown 42 percent year-to-date after a disastrous year in 2011, but shares are now below $8.

U.S. banks not 'safest.' No U.S. bank makes the Global Finance Magazine list of world's safest until No. 29, when Bank of New York Mellon squeezes in, according to the Wall Street Journal. No publicly traded bank makes the top 10. The "safest" banks are all state-backed. Wells Fargo cracks the list at No. 48. None of the three biggest U.S. banks -- JPMorgan Chase, Bank of America and Citigroup -- are on it.

Finance jobs swing to NY. Financial hiring growth has moved from London back to New York City as the European banks continue to deal with the debt crisis, Bloomberg says. London is expected to lose financial jobs, while NYC finance employment will grow.

Bank exec alleges police brutality. A 53-year-old vice chairman at Deutsche Bank AG has filed a lawsuit against the Los Angeles Police Department alleging that several officers kidnapped and beat him, the Wall Street Journal reports. The LAPD says they took him to a hotel after he exhibited "erratic behavior" and "subdued" him when he charged at officers.


Anonymous said...

"The "safest" banks are all state-backed."

No thanks. I'll take my chances with my investor-owned bank and pass on the fascism.

Anonymous said...

JPMorgan, BoA and Citi aren't "state-backed"? HAHAHAHAHAHAHAHAHA.

Anonymous said...

Doesn't the LAPD know that the banks own the government?