Big Banks Dip Despite Rising Home Sales (Volcker Update)

BY Philip van Doorn|12/30/13 - 07:47 PM EST

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NEW YORK (TheStreet) -- Many large-cap bank stocks pulled back on Monday,
despite some good economic news.

PNC Financial Services Group  (PNC_) led the sector down, with shares sliding
0.9% to close at $77.51. Bank of America  (BAC_) was down 0.8% to close at $15.54 and Morgan Stanley (MS_) was down 0.7% to close at $30.85.

The broad indices ended mixed, with one more day to cap off the best year for the
S&P 500 since 1997.  The index was down very slightly on Monday and has risen 
29% this year, following a 13% gain during 2012.

The KBW Bank Index (I:BKX) on Monday pulled back 0.2% to 68.97, with the 24
 index components split between winners and losers.  But the banks are looking at 
another banner year, with the index rising 34%, after a gain of 30% during 2012.

In economic news on Monday, the National Association of Realtors said pending 
sales of previously owned homes in the U.S. rose 0.2% during November to a
 Home Sales Index reading of 102.1, from a downwardly revised reading of 101.5 for
 October. Pending sales during November were down 1.6% from a year earlier.
 Economists polled by Reuters on average estimated the November figure would 
rise by 1.5%.

While the pending home sales figure for November was disappointing to many 
economists, this was the first increase in six months.  

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Why Real Estate is a Better Investment Than Stocks

SATURDAY, 28 DECEMBER 2013 18:31 SUZY RODONI SILVERBERG

By Suzy Rodoni, Real Estate Eight Three One

A recent article from FortuneBuilders, a premier real estate investment education company, said,  “Given that the U.S. market as a whole is just getting warmed up for a new boom, virtually every property sector is set to take off. Analysts are predicting great real estate investing opportunities from coast to coast.”  If you are debating about how to invest your money in 2014, real estate is definitely something to consider. Investing in real estate is largely considered, in general, to be safer than investing than stocks. Below are some of the benefits of investing in real estate:

You have the ability to leverage your purchase: When buying real estate, you have the ability to purchase a $500,000 investment with a 20% down payment.  That allows you to control a $500,000 property with $100,000 while buying $100,000 of stock requires you to invest $100,000. 

You can write off depreciation for investment real estate: One major benefit to investment property owners comes in the form of depreciation write-off.  The IRS allows owners to take a “paper” or tax loss every year based on the loss of value due to physical deterioration.  This allows the property owner to reduce their taxable income by thousands of dollars each year.  In most cases, your asset is increasing in value as you write off those losses.

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Axis Real Estate Investment Trust : Kenanga: Axis REIT may sell more assets

12/30/2013 | 11:55pm US/Eastern

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KUALA LUMPUR: Axis REIT Managers Bhd may sell more assets at the expense of making acquisitions next year, a research firm said.
Axis REIT last week announced that it is selling Axis Plaza for RM34 million.
Kenanga Research feels there could be other disposals.
"Axis REIT has a total of RM225 million revaluation gains across all its assets, and we believe asset acquisitions in financial year 2014 may be tough due to the low-cap rate environment," the firm said.
The RM34 million is at a slight premium to the appraised value of Axis Plaza of RM32 million, Kenanga Research said. This gives a net disposal gain of RM11 million versus the investment cost of RM22.5 million and estimated disposal expense of RM500,000.
The disposal is to realise the value of the asset under Axis REIT's value enhancement efforts as it has fully matured, the firm said, adding thatAxis Plaza had previously recorded below average occupancy rates of 89 per cent.
"The intention to trade assets is well within the company's strategy of managing a property trading portfolio," Kenanga Research said.
The firm said Axis REIT unitholders can look forward to the potential distribution of RM11 million net gains, which work out to 2.35 sen per share.
The remaining RM23 million proceeds from the disposal will be used to pare down borrowings to allow for new gearing headroom for new asset enhancement initiatives and potential new acquisitions.
Kenanga Research expects Axis REIT's gearing next year to reduce marginally to 0.35 from 0.36 time after the exercise.
The firm has also increased its financial year 2014 realised net income and distribution per unit by more than 11 per cent each to RM104.8 million and 22.8 sen, respectively, to take into account the exercise.© Al Bawaba Ltd., Acquiremedia 2013

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Do Big Banks Care 

About You? 

This Company Doesn't 

Think So Either

By Jay Jenkins | More Articles 
December 15, 2013 | Comments (0)

Last November, StoneCastle Financial went public to little fanfare. 

The company, a closed end investment vehicle, raised a hair over 

$110 million to be used to invest into U.S. community banks. 

As of yet, the company hasn't reported any quarterly financial 

information, and it will be some time before management is able

 to fully deploy this capital. So while I'm hesitant to invest in 

StoneCastle today, I am absolutely excited about what this 

vehicle represents. Here's why.

Bank of America and other mega banks are bulliesThe concentration of assets in the U.S. banking industry is mind 

blowing. Its the root cause of "too big to fail." It's a driving reason

 why a handful of banks can pump and then dump the U.S.

 economy with sub-prime loans, and its the reason that the 

country can lose $14 trillion of wealth in a two year span 

without any meaningful repercussions for those responsible.

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How Crowdfunding Could Reshape Real Estate Investing

Real Estate in Argentina Should
Be Considered As a Top Property
Destination (Photo credit: International
Real Estate Listings)

Crowdfunding, a new way to raise capital, has been gaining traction lately and it’s clear (at least to me) the result will be far-reaching. Traditionally, entrepreneurs or inventors would self-fund ideas or seek out banks and professional or institutional investors to secure the capital they needed to take their ideas to the next level. With crowdfunding, on the other hand, entrepreneurs can raise capital from a group of smaller investors in a
secure and automated way online. At a basic level, here’s how crowdfunding
differs from the traditional fundraising model:

Traditional Fundraising Model (Simplified)

Idea –> Pitch Banks or Investors –> Funding –> Execute Idea

Non-traditional Crowdfunding Model (Also Simplified)

Idea –> Set Up Crowdfunding Initiative –> Funding Goal Reached –>
Funding –> Execute Idea

This “democratizing” of fundraising allows people outside the traditional investor
 groups and lenders to join in on the process. Kickstarter is still leading the way
when it comes to creative consumer products with over $900 million pledged to
 over 125,000 unique projects. So far, crowdfunding has had the most success with
tangible consumer products. For example, there might be an engineer who is building
a more efficient bike seat and needs $10,000 to get it to market. He can post the project
on a crowdfunding website and immediately have access to thousands (if not millions)
of people and customers who would like to support bringing the project to market.
Once the funding goal is reached, the money is transferred and the project can start.

For investors, crowdfunding means less risky, smaller dollar investments in projects
they care about. For entrepreneurs, crowdfunding is a better alternative to traditional
 investment capital that improves the likelihood of securing the capital required to stay
in business.
Rod Ebrahimi, Contributor - ENTREPRENEURS 

12/12/2013 @ 9:00AM |2,613 views

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JPMorgan's Reported Madoff Deal Proves Some Banks Too Big To Jail

Posted: 12/12/2013 8:41 am EST  |  Updated: 12/12/2013 9:07 am 
By: Mark Gongloff

mark.gongloff@huffingtonpost.com

me a fan

mark.gongloff@huffingtonpost.com

JPMorgan Chase is reportedly about to cut a sweet deal to dodge criminal charges over its role in the Bernie Madoff Ponzi scheme. It's just the latest evidence that, despite their tough talk, U.S. prosecutors still think some banks are too big to jail.

JPMorgan is close to paying about $2 billion to settle claims that, as Madoff's main bank for many years, it ignored blatant signs that Madoff was up to no good, the New York Times reports. As part of the deal, JPMorgan will also enter what's known as a deferred prosecution agreement, where everybody will agree that the biggest U.S. bank broke criminal laws and also that prosecutors don't plan to do anything about it, as long as JPMorgan keeps its nose clean.

Prosecutors, including U.S. Attorney Preet Bharara, considered and rejected the idea of making the bank actually plead guilty to criminal charges, according to the NYT. That's disappointing, considering it was Bharara who declared this summer: "I don't think anyone is too big to indict, no one is too big to jail. There's enough moral hazard in the industry. If you give people a blank check and tell them they have a get-out-of-jail-free card because of their size...that's a very dangerous thing."

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It’s Hard to Summon Sympathy for Big Banks

Alex Wong/Getty Images

A protest earlier this year in 
Washington against foreclosures 
targeted banks.

By FLOYD NORRIS

Published: December 12, 2013

It is not just the increased regulation. It’s the lack of trust.

“At what point does this stop?” asked Gary Lynch, the former director of enforcement for the Securities and Exchange Commission who has gone on to jobs with many leading Wall Street firms and is now global general counsel at Bank of America. He was referring to the escalation in penalties being levied on banks, culminating in the $13 billion JPMorgan Chase was forced to pay for a series of transgressions.

Speaking at a banking industry conference last month in New York, Mr. Lynch recalled that he had been working at Morgan Stanley in London before he returned to this country in 2011 to join Bank of America. He had thought, he said, that by then — three years after the collapse of Lehman Brothers set off the financial crisis — anger at banks would have declined.

He was wrong: “It was worse.”

Report: Foreclosure crisis is winding downJulie Schmit, USA TODAY12:06 a.m. EST December 12, 2013

Foreclosure activity in November was down 37% from a year ago and the easing foreclosure crisis lacks power to derail the housing rebound underway, RealtyTrac says.

(Photo: Joe Raedle Getty Images)

STORY HIGHLIGHTS

• Foreclosure activity in November down 37% from a year ago
• Foreclosure starts in November fell to lowest level in eight years
• States with slower foreclosure processes have longer ways to go

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The foreclosure crisis is nearing an end and won't derail the housing rebound underway in many parts of the country, real estate research firms say.

Foreclosure activity in November was down 37% from a year ago and 15% from October, RealtyTrac reports today.

November foreclosure starts fell to their lowest level since December 2005 — before the historic housing bust began. Starts offer an indication of future numbers of distressed homes on the market.

Change is here! Right Now! Starting with You!

Homeowners unite against threat of foreclosure

12/13/13 03:25 PM—UPDATED 12/13/13 04:32 PM

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By Julia Nutter

In Newark, the nightmare of losing your home is very real.  According to NJ Communities United, almost 1 in 4 mortgage-holders in New Jersey are underwater – they owe more money than their home is now worth. And in Newark alone, there have been almost 7,000 foreclosures between 2008 and 2012.

On a chilly Saturday morning in Newark, New Jersey, a group of about 45 people gathered together in a small conference room not far from Newark-Penn Station. NJ Communities United, a progressive, grassroots advocacy group that focuses on low and moderate-income communities, operates out of the office upstairs. You might spot members of NJ Communities United in demonstrations across the state or in Washington, D.C. protesting for education or immigration reform. Signs and posters from these protests adorn the walls.

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Bank of America to Pay Back Wages

BofA ordered to pay back wages in hiring discrimination lawsuit

"Sept. 24, 2013  |  10:32 AM

CHARLOTTE, N.C., Sept. 24 (UPI) -- A federal judge has ordered Bank of America to pay back wages to 1,147 African-Americans who were turned down for jobs at the bank's Charlotte, N.C., facility.U.S. Department of Labor Administrative Law Judge Linda Chapman said the bank owed $964,033 to 1,034 applicants who were rejected for jobs in 1993 and $1,217,560 to 113 individuals who were rejected from 2002 to 2005.
The bank was also ordered to hire 10 members of the class action lawsuit as soon as the appropriate openings became available.
The bank was ordered to hire the 10 class members "with appropriate seniority," said the Department of Labor's Office of Federal Contract Compliance Program, which regulates hiring with regard to discrimination in companies that are federal contractors.
Bank of America was deemed a federal contractor because it is a federally insured bank, the OFCCP said.
The agency said it began a "routine compliance review" at the bank in November 1993 that "revealed indications of systematic hiring discrimination affecting African-American jobseekers looking for work as tellers and entry level clerks at the Charlotte facility."
Efforts to reconcile the differences with the bank failed, which led the Solicitor of Labor in 1997 to file a complaint against the bank."

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Bank of America Corp. Pays $39 Million

NEW YORK (AP) — "Bank of America Corp. has agreed to pay $39 million to settle claims of gender bias by women in its Merrill Lynch brokerage division.

The settlement was announced Friday by law firms representing women working as financial advisers or licensed financial advisers at Banc of America Investment Services Inc. or Merrill Lynch from 2007 through 2013.

Banc of America Investment Services was a brokerage firm owned by Bank of America. It was later folded into Merrill Lynch when BofA bought Merrill in 2009.

The lawsuit claims that the bank discriminated against women in compensation and business opportunities. The plaintiffs said women tended to be shut out of teams that worked on the most lucrative accounts, and so their compensation suffered."

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Bank of America Pays 2.2 Million in restitution

Usatoday.com

"COLUMBIA, S.C. -- Bank of America has been ordered to pay nearly $2.2 million in restitution for discriminating against more than 1,100 black job seekers.

Judge Linda S. Chapman of the U.S. Department of Labor has ordered the bank to pay 1,147 African American job applicants $2,181,593 in back wages and interest, for race-based hiring discrimination at the company's Charlotte, N.C., facility.

The Department of Labor's ruling awards $964,033 to 1,034 applicants who were rejected for jobs in 1993, and awards $1,217,560 to 113 applicants rejected between 2002 and 2005".

Change is here! Right Now! Starting with You!

Bank of America Hustle

By Nate Raymond

NEW YORK | Mon Sep 23, 2013 2:45pm EDT

"(Reuters) - Bank of America Corp heads to trial this week over allegations its Countrywide unit approved deficient home loans in a process called "Hustle," defrauding Fannie Mae and Freddie Mac, the U.S. government enterprises that underwrite mortgages.

In what would be the government's first financial crisis case to go to trial against a major bank over defective mortgages, jury selection is set to begin in federal court in New York on Tuesday, barring a last-minute settlement.

The trial is also a reminder of the billions of dollars in legal liabilities Bank of America has incurred as a result of its 2008 acquisition of Countrywide Financial Corp, which became a poster child of the mortgage meltdown.

The U.S. Justice Department filed the civil lawsuit in 2012, blaming the bank for more than $1 billion in losses to Fannie Mae and Freddie Mac, which bought mortgages that later defaulted. Since then, new evidence and pre-trial rulings by U.S. District Judge Jed Rakoff have pared the case back."

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Bank of America Continues to Pays Big

This year alone Bank of America has taken major hits. Consumer lawsuits the Big Bank was ordered to pay. Hit with multi million dollar discrimination law suits among others.

"  By Dena Aubin    ROBO CALL HARASSMENT 

NEW YORK, Sept 30 (Reuters) - Bank of America has agreed to pay $32 million to settle charges that it made harassing debt collection calls to customers' cell phones, in what is believed to be the largest cash payout ever under a 1991 law meant to protect consumers from unwanted calls.

The settlement will resolve multiple proposed class action lawsuits filed on behalf of 7.7 million of the bank's credit card and mortgage loan customers, according to court documents."