Wells Fargo: Charlotte should see stronger job growth in 2012

After a year of high unemployment and job losses, Charlotte's economy is poised for "much stronger job and personal income growth" in 2012, according to a report issued today by Wells Fargo economists.

The report states that Charlotte is likely to add jobs at a higher-than-average pace, buoyed by recent announcements from companies like Chiquita, Electrolux, Husqvarna, Time Warner Cable and Capgemini. Wells Fargo cites a "young and highly educated workforce" as an advantage.

"The relocation and expansion activities over the next few months combined with the Democratic National Convention in the latter part of the year should ensure that the Queen City will begin a more rapid and sustained recovery in the year ahead," the report says.

Bank of North Carolina "needs to improve" community investment, FDIC says

Bank of North Carolina "needs to improve" its community investments, the FDIC noted as part of a federally mandated examination.

The Thomasville-based bank received a satisfactory score on its Community Reinvestment Act examination overall, but showed a "poor level of qualified community development investments and grants," "poor responsiveness to credit and community economic development needs," and "rarely uses innovative and/or complex investments to support community development initiatives," the report -- made public this month -- says.

The Community Reinvestment Act, passed in 1977, requires banks to demonstrate they are investing and lending equitably in the communities where they take deposits. Banks are examined every few years.

Bank of North Carolina has been expanding of late, announcing or closing three deals in recent weeks. The bank operates around North and South Carolina. It has a lending office in Charlotte, though full-service branches are coming soon.

In the CRA exam, the bank scored well in lending, with a "high satisfactory" rating. A large percentage of its loans -- 82 percent in 2010 -- were in the communities they draw deposits from, and loan distribution reflected the demographics of the community, the report states.

But the bank had few qualified community investments, defined as investments or grants that promote affordable housing, low- and moderate-income community services, economic development, or community revitalization. Bank of North Carolina's qualified investments consisted of about $1.4 million in assets -- 0.07 percent of its total -- made up mostly of mortgage-backed securities from low- to moderate-income borrowers.

Morning roundup: Politics and bank stocks

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

• Stock market predictions abound this time of year, but continued economic uncertainty and market volatility mean what happens this year is anybody's guess, Reuters writes.


• Despite the headwinds still facing the markets, many analysts remain bullish about 2012. CNBC explains why.


• Some investors are finding high yields from trust preferreds at battered banks, including Charlotte's Bank of America, Bloomberg reports.


• Republican presidential candidate Ron Paul's views on the U.S. banking system make sense, though his remedies are vague, an economist writes in the New York Times.


• Bank of America, Goldman Sachs and other big banks might see shares fall as Republican candidates step up their anti-bank rhetoric in an attempt to challenge front-runner Mitt Romney, a Forbes contributor writes.

Obama set to name Cordray to CFPB through recess appointment

President Barack Obama is set to name Richard Cordray to lead the new federal consumer financial protection bureau through a recess appointment, a tactic that a Charlotte-based banking lawyer sets up another partisan battle.

"I think it was a calculated political move on the part of the president of the United States to score points with his base and create a problem with Republicans who would challenge it," said Don Lampe, an attorney with Dykema's office in Charlotte.

The Consumer Financial Protection Bureau, created as part of the Dodd-Frank financial reform law as a watchdog for financial products like mortgages and credit cards, had gone without a permanent director in the face of opposition from Republicans.

Lampe said he expects in the coming hours for Republicans to make public statements questioning the president's constitutional authority to make such an appointment and calling it overreaching.

Liberal group ThinkProgress has already published a blog post explaining why it believes Obama had the authority to make the pick.

The naming of a director will affect non-banks -- like mortgage lenders and payday lenders -- more than deposit-taking institutions, Lampe said, due to the structure of the law. Banks are generally already subject to oversight from the bureau.

UPDATE: In a tweet, U.S. Rep. David Price, D-N.C., praisedObama's move, saying "Americans deserve a strong CFPB even if Senate GOP objects."

UPDATE: From the American Bankers Association -- "The controversial nature of today's recess appointment reinforces the banking industry's concerns about the Bureau's structure and lack of accountability. It puts the Bureau's future actions in constitutional jeopardy, threatening its work, complicating compliance efforts of banks and further undermining the entity's authority and credibility." Read more.

Morning roundup: Big banks to lead stock market rally?

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

• Analysts say the six biggest U.S. banks, including Charlotte's Bank of America, could post an average profit increase of 57 percent this year, Bloomberg reports. Though last year, analysts predicted the lenders' profits would jump 32 percent in 2011 - and that proved significantly off base.


• CNBC has high hopes for the overall market in 2012, saying most strategists agree that after last year's flat finish, there's nowhere to go but up.


• Today, though, Euro-zone worries are back after a big rally Tuesday, driving stocks lower as they opened, Reuters reports.


• A New York Times op-ed makes the case for bringing back "boring banks," saying banks should shed risky, complicated practices.


• Some banks are trying to woo customers back, offering credit cards to more borrowers and discounts on closing costs for mortgage refinancing, The Motley Fool writes

Bank of North Carolina closes purchase of S.C. bank

Thomasville-based Bank of North Carolina announced Tuesday that it has completed its acquisition of South Carolina-based Regent Bank, effective on the last day of 2011.

The $10 million deal marks the first entry into the Greenville, S.C. market. In the state, the bank operates as BNC Bank.

The bank closed on its acquisition of Blue Ridge Savings Bank in the fourth quarter, and announced it was purchasing Durham-based KeySource Financial.

Stocks strong as 2012 starts, but will rally continue?

Stocks began the new year with big gains, and that could continue, a Robert W. Baird & Co. investment expert said in a research note today, citing "mildly bullish" economic indicators that could boost markets.

Chief investment strategist Bruce Bittles pointed to a few signs of economic improvement - falling jobless claims, rising contracts to buy new homes and climbing consumer confidence - but acknowledged challenges remain in the broader U.S. economy. Economic growth will likely remain sluggish, due in part to the European debt crisis, and corporate profits could slow, he said.

Still, stocks entered the year with conservative valuations, and investor expectations are low, meaning there is room for an upside surprise, he said.

For now, the strategist sees strength in consumer staples, rating the sector a "buy." Utilities, health care, industrials and consumer discretionary stocks seem to be improving, he said. Bittles rates financials, meanwhile, as the weakest sector, suggesting there's still a long road ahead for many investors.

January is typically a strong month for stocks. So it remains to be seen whether the uptick on the first trading day of the year becomes a trend.