Wednesday, June 13, 2012

Wells Fargo mortgage 'cowboys' target 40 percent share

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

Wells Fargo cowboys. In January, a team of Wells Fargo mortgage unit managers dressed up as cowboys for a business meeting where the invitation said "40% or BUST!!" Bloomberg reports, referencing the market share of the mortgage business the San Francisco bank wanted to control. It currently leads the field with 34 percent share. The target is a bit out of character for Wells, which has generally not aimed to the be the biggest in its categories. But the mortgage unit has been very profitable for the bank as competitors like Bank of America have pulled back.

Moynihan and Countrywide. It appears that Bank of America CEO Brian Moynihan will be called on to testify again on the bank's disastrous acquisition of the subprime mortgage lender Countrywide after reportedly not being able to recall some details in his last deposition, says. It's part of a suit brought by bond insurer MBIA after it guaranteed some bad Countrywide mortgage bonds.

PNC putbacks. Pittsburgh bank PNC, which recently entered the Charlotte market, will set aside $350 million to cover potential putbacks from Fannie Mae and Freddie Mac, more than 10 times what it reserved in the first quarter, the Wall Street Journal reports. The GSE putbacks have increased in the past year.

Mr. Dimon goes to Washington. JPMorgan CEO Jamie Dimon will be in D.C. today testifying in the Senate about his bank's $2 billion-plus chief investment office losses. He's expected to call them an "isolated incident" and say taxpayers and customers weren't at risk, The New York Times says.


Anonymous said...

The Wells Fargo bit tickles me to death. I used to work for them and once got written up for wearing cowboy boots to work.

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