Morning roundup: State AG settlement inching closer, California back to the table

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

• The settlement between the largest U.S. mortgage servicers -- including Bank of America and Wells Fargo -- and a consortium of state attorneys general is inching closer, and California is back at the bargaining table after months of absence, The New York Times says. When the deal, expected to be as much as $25 billion, comes through, bank earnings shouldn't be majorly affected because they have already put aside money for the penalty, a Reuters analysis shows.
• Bank of America, struggling to deal with the demand, is telling some customers looking to refinance their mortgages to wait up to 90 days to start an application, Bloomberg reports.
• The total cost of mortgage problems and improper foreclosures has reached more than $72 billion for the largest U.S. mortgage servicers, Bloomberg reports. Bank of America alone counts for more than $40 billion.

Small business owners most optimistic since 2008, Wells Fargo says

Small business owners are the most optimistic about their finances and hiring prospects than they've been since July 2008, according to a Wells Fargo-Gallup survey released Tuesday.

The results was compiled from telephone interviews with 600 small business owners between Jan. 9 and Jan. 13, and covers their expectations for the coming 12 months.

Among the survey's findings:

• 49 percent of owners expect revenues to increase, up from 37 percent in October.
• 22 percent expect the number of jobs at their business to increase, up from 15 percent.
• The overall Small Business Index score increased to 15, from -3 in October.

The index based on the owner's opinion of the business's present condition remained negative, at -6, though that is up from -11 in October.

Morning roundup: Banks encouraging short sales

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

• Banks are offering cash incentives - some as much as $35,000 - to delinquent homeowners to sell their properties for less than they owe, Bloomberg reports. Lenders have found these short sales faster and easier than foreclosures, and they're encouraging them as part of a continued effort to move troubled mortgages off their books.
• The Wall Street Journal examines whether big banks can be part of a "socially responsible investing" plan.
• An emerging class of "shadow banks" could prompt a new wave of financial turmoil, Reuters reports. Now, watchdogs are focusing on hedge funds and money market funds that are engaging in unregulated financial activity.
• A company that provided home foreclosure services to lenders has been indicted on forgery charges by a Missouri grand jury, the New York Times reports.
• Stocks slipped as markets opened this morning amid mixed earnings reports and continued uncertainty over Greek debt talks, CNBC reports.
  

Expect more lawsuits against officers of failed banks

Officers at failed banks may see a wave of lawsuits from the FDIC as the three-year period the regulatory body has to take action comes to a close for a number of banks, legal firm Bryan Cave's banking unit says.

Bank failures spiked in 2009, to 140 from 25 the year before. The three-year period the FDIC has to charge officers at those banks with negligence or other wrongdoing ends this year.

The most recent FDIC suit, against a failed California bank, came just days before that period came to an end, Bryan Cave points out. The FDIC has now sued officers and directors at about 20 failed banks.

In late December, the FDIC sued officers at The Bank of Asheville, claiming negligence in its rapid growth. Bryan Cave said that was an indication the regulatory body was becoming more aggressive.

Merrill Edge call centers lauded by J.D. Power

Consumer ratings firm J.D. Power and Associates has named Bank of America Merrill Edge's call centers "An Outstanding Customer Service Experience," after reviewing the bank's services through its call center certification program.

Merrill Edge is Merrill Lynch's investment advice and platform for the "mass affluent" category of customer, or those with between $50,000 and $250,000 in investable assets. It offers its services over the phone through the call centers, known as the Merrill Edge Advisory Center, or in person at some banks by appointment.

J.D. Power's review looked at more than 100 practices and involved a random survey of customers. To earn the outstanding rating, the call center must fall within the top 20 percent of service scores.

Morning roundup: State AG settlement expected to wrap up this week

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

• The settlement between the largest mortgage servicers, state attorneys general and federal agencies is expected to wrap up this week, the Wall Street Journal reports. There is still uncertainty, though, about whether California will sign on.
• The Berkeley, Calif., city council is considering taking its money out of Wells Fargo and putting it in a community bank. Time magazine wonders, should cities have a Bank Transfer Day of their own?
• Bank of America had already been shrinking its balance sheet. But the Charlotte bank, and others with presences on Wall Street, are also shrinking physically, selling or subleasing hundreds of thousands of square feet of office space, the Wall Street Journal says.
• Independent brokerages in the U.S. are increasingly closing this year as tough markets make it more difficult for them to raise capital, Bloomberg reports.

BB&T buys wholesale insurance brokerage

BB&T announced Friday that it is purchasing a wholesale insurance brokerage in a $570 million cash deal.

The acquisition of two divisions from New Jersey-based Crump Group Inc. will make the Winston-Salem bank the country's biggest wholesale life insurance distributor. It will also boost the bank's commercial insurance business.

"The deal is a great strategic fit for BB&T, immediately increasing and diversifying our fee income while driving stronger revenues," CEO Kelly King said in a statement.

The purchase is expected to increase BB&T's annual revenue by $300 million. It is expected to close in the first quarter.