Waccamaw Bank subject to Fed action

Long-struggling Whiteville-based Waccamaw Bank has been declared "critically undercapitalized" and must now either increase its equity through new shares or find a buyer, according to a Federal Reserve enforcement action made public Tuesday.

The bank has until Jan. 6 to become adequately capitalized, the action states. It's subject to a host of regulatory restrictions until then.

The bank also received a Fed enforcment action in June 2010, the StarNews in Wilmington reports, which directed the bank to strengthen mangagement and operations. Since then, the bank has sold branches to raise money.

The bank was recently delisted from Nasdaq after failing to file timely financial reports.

The bank does not have a presence in the Charlotte area, but has several locations in Southeastern North Carolina and in South Carolina.

Morning roundup: Evolving financial landscape

Here's a look at this morning's banking and finance headlines:

• A former official in charge of investigating the financial crisis said many inquiries of wrongdoing can't succeed as criminal prosecutions, the Wall Street Journal reports.

• Reuters examines how the global financial landscape is changing.

• Economic problems in Europe and the U.S. are beginning to affect Asia, the New York Times writes.

• According to Seeking Alpha, Bank of America is "a clear buy" now.

• U.S. markets opened flat this morning as investors remained cautious about ongoing troubles in Europe, Reuters reports.
  

NewDominion hires two senior vice presidents

Charlotte-based NewDominion Bank announced Monday the hiring of two senior vice presidents to oversee the bank's commercial business.

Saeed Moghadam and Steve Kinzler both hold the title of senior vice president and commercial relationship manager. Moghadam will build business in Charlotte, while Kinzler will be responsible for developing business in the Lake Norman Area.

The new hires are the latest in a series of announcements as the bank rebuilds its management team. CEO John Hipp took over in November 2010 in the wake of a FDIC consent order, and in the next 12 months hired a new chief operating officer, chief credit officer and chief financial officer.

Moghadam was hired in November, and has previously wored at JP Morgan Chase, Fifth Third Bank and Bank of America in a 13-year career. He serves on a number of nonprofit boards in the Charlotte area.

Kinzler came to NewDominion the month before, after a 25-year career that has included positions at First Citizens Bank and Piedmont Bank. The N.C. State graduate is active in Lake Norman-area community organizations.

Morning roundup: Bank deposits could prove flighty

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

• The news for months has been that banks are flush with deposits. But they might not be the kind the banks really want, the Wall Street Journal reports.


• Small banks are making a push in the land of big banks: New York City, InvestmentNews.com reports.


• Bank runs still exist, they're just harder to see coming, the Wall Street Journal says.


• CNBC predicts that Bank of America will try to sell Merrill Lynch as part of its "boldest predictions for 2012" feature.

Morning roundup: Consumers and big banks

Here's what's happening in banking and finance news today:

• Consumers' top credit card complaint? Billing disputes, the Wall Street Journal reports.
  


• Some customers who want to move their money out of a big bank are finding it isn't always easy, another Journal story explains.
  


• Massachusetts' state attorney general is suing the nation's five largest mortgage lenders, citing abuse of troubled borrowers across the state, the New York Times writes.
  


• German Chancellor Angela Merkel says it will take years to resolve Europe's debt crisis, Reuters reports.
  


• Seeking Alpha writes that Bank of America is still a bad bet when it comes to investing.

More from the Stumpf speech: Weighing in central bank action, citing big stats

Wells Fargo CEO John Stumpf spoke to about 3,000 employees in a Charlotte convention center ballroom this morning, causing little controversy in a congratulatory speech.

Here's more that wasn't in the Observer's main story.

In his speech:

• Steps away from the NASCAR Hall of Fame, Stumpf used an extended stock car racing metaphor to praise his employees for its merger. After mentioning the Daytona 500, he called the last three years since the merger was announced the Wells Fargo 1000. And he compared several bank executives to NASCAR greats. "The names might not have been Earnhardt, and Allison and Petty," he said. "They were Kelly and Carroll and Shulte and Engel and Evans. Champions in their own right. Leading all of you, who are also champions."



• On national employment: Stumpf said Wells Fargo has 270,000 employees, of which 265,000 are in the U.S. That means 1 in 500 working Americans are employed by the bank, Stumpf said. Wells is the 12th largest employer in the country.



• On state employment: Wells is the second largest employer in North Carolina, Stumpf said, behind only Walmart. One in 150 working North Carolinians is a Wells employee. (I'm unsure if this is true. The ESC has Food Lion and Duke University also ahead of Wells.)



• Wells has 5 billion "customer interactions" per year, meaning 10,000 each minute.



• Wells Fargo has the largest United Way campaign out of all companies. Overall, it gave about $220 million to 19,000 organizations.

While talking to reporters afterward:

• On several central banks' move to boost global liquidity: "I was not consulted, but I think it was a good idea... Clearly the marketlpace agreed." He said he does not know if the world is on the verge of another financial crisis, but that he hasn't seen many double-dip recessions. He said Wells does not have much European exposure.



• On the upcoming federal stress tests and capital plans: Stumpf said the company already puts its balance sheet through stress tests and is not concerned. As far as capital, he said he is not concerned about meeting more stringent capital requirements. "In the modern Wells Fargo, we've never had so much capital.... Capital is not an issue."



• As far as Charlotte employment, he said he's been careful not to give firm numbers. The number of employees in any area depends on business conditions. But: "We love Charlotte."



• Stumpf said Wells has "settled or resolved" much of the legal risk inherited from Wachovia.



• On potential acquisitions: "Never say never." But the bank has reached the legal threshold of exceeding more than 10 percent of the nation's deposit share in an acquisition. Wells might consider buying a "bolt-on business."

Morning roundup: "We are the 99 percent" sticks

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

• Most of the biggest Occupy Wall Street camps are gone, but the "We are the 99 percent" slogan remains, the New York Times reports.

• Protesters at N.C. State University shouted down Wells Fargo CEO John Stumpf during a speech in Raleigh Wednesday, the News & Observer writes.

• Stock markets are drifting lower this morning after a big run Wednesday, Reuters reports.
  

• The Associated Press examines Bank of America's plunging stock price.

• ProPublica's Jesse Eisinger writes that even some Wall Street insiders sympathize with the "Occupy" sentiment.