The Zacks Analyst Blog Highlights: Citigroup, Bank of America, JPMorgan Chase, Wells Fargo and U.S. Bancorp PR Newswire CHICAGO, Jan. 9, 2013 CHICAGO, Jan. 9, 2013 /PRNewswire/ --Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog includeCitigroup, Inc. (NYSE:C), Bank of America Corporation (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Company (NYSE:WFC), U.S. Bancorp (NYSE:USB). (Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO) Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513 Here are highlights from Tuesday's Analyst Blog: Foreclosure Mess Finally Resolved Homeowners whose properties were wrongly foreclosed as well as the entire housing sector can now breathe a sigh of relief. The Office of the Comptroller of the Currency (OCC) and other banking regulators have announced a foreclosure settlement deal with 10 banks. The banks – Citigroup, Inc. (NYSE: C ), Bank of America Corporation (NYSE: BAC ), JPMorgan Chase & Co. (NYSE: JPM ), Wells Fargo & Company (NYSE: WFC ), U.S. Bancorp (NYSE: USB ), among others, have agreed to pay in aggregate $8.5 billion in settlement. Four banks are still in discussions with the regulators. Out of the total, $3.3 billion will be utilized for direct payments to eligible borrowers, while $5.2 billion will be used for providing relief to troubled homeowners through principal reductions and loan modifications. The deal will enable more than 3.8 billion homeowners, whose property was wrongly foreclosed in 2009–2010 by the abovementioned mortgage servicers to get cash compensation, ranging from a few hundred dollars to maximum of $125,000. As a part of the deal, borrowers are expected to be contacted by the end of March with details related to their payments. Further, the regulators will form 11 categories of aggrieved borrowers and the banks will categorize borrowers for payments. Additionally, under the terms of the deal, the process initiated by the OCC in 2011 – to review all the borrowers' files that were wrongly foreclosed in 2009-2010 – would end. Under that proposal, the banks were required to hire independent consultants to go through the loan files and look for any faulty foreclosure practice. However, this was turning out to be costly and time-consuming affair for the banks – having already spent nearly $1.5 billion on the consultants hired. Therefore, they opted for a one-time settlement deal. Yet, banks would have to take one-time charges related to the settlement. Wells Fargo anticipates a pre-tax charge of about $644 million in the fourth quarter of 2012 related to the deal, whereas Citigroup expects to record a pre-tax charge of $305 million. Further, BofA anticipates its fourth-quarter results to be adversely impacted by about $2.5 billion of pre-tax charge for the settlement deal, litigation (primarily mortgage-related) and other mortgage-related matters. For USB, the deal is anticipated to lower its fourth-quarter earnings per share by 3 cents for the cash part of the deal. Though the settlement is expected to marginally dent the companies' fourth-quarter results, in the long run it will be a relief for the banks. Further, the distressed homeowners would also be benefited. We are hopeful that like the earlier foreclosure settlement deal, this one would also be a decisive step in restoring confidence in businesses and rejuvenating the sagging housing market. Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515. About Zacks Equity Research Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term. Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons. Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517 About Zacks Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release. Follow us on Twitter: http://twitter.com/zacksresearch Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 firstname.lastname@example.org http://www.zacks.com SOURCE Zacks Investment Research, Inc. Website: http://www.zacks.com
The Zacks Analyst Blog Highlights: Citigroup, Bank of America, JPMorgan Chase, Wells Fargo and U.S. Bancorp
Press spacebar to pause and continue. Press esc to stop.