Friday, August 3, 2012

Faster job growth boosts stocks

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

Job growth boosts stocks. Bank stocks are pointed higher Friday after a new report shows the U.S. economy gained 163,000 jobs in July, higher than expected, The New York Times says. The unemployment rate, however, ticked up slightly. Both Bank of America and Wells Fargo shares were up more than 1 percent in premarket trading.

Mortgage trouble. The recent surge in rep and warranty claims on mortgages sold by Bank of America aren't just from faulty Countrywide loans, Bloomberg reports. They also include a sizable portion made by the legacy Charlotte bank and its Merrill Lynch unit.

JPMorgan exec pushed 'Whale.' A JPMorgan Chase executive encouraged the trader who racked up billions in losses to adjust the values of his positions higher, presumably to avoid causing alarm by higher-ups, the Wall Street Journal reports. The findings are part of the bank's internal review of what happened.

Small banks fight CFPB. Community banks are asking the Consumer Financial Protection Bureau to exempt them from two new rules on mortgage disclosures and underwriting, saying they would be too burdensome, Bloomberg reports. Small banks have already gotten some concessions as Dodd-Frank goes into effect.

Dark Knight. Knight Capital is seeking a rescue buyer and on the verge of collapse after a computer glitch caused it to lose millions of dollars trading, the Wall Street Journal reports. The firm has last three-quarters of its value in recent days and many firms have stopped doing business with it.