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Warren, Sanders reiterate calls to break up big banks; EverBank Financial in advanced talks to be acquired for $19.50 per share


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Warren, Sanders reiterate calls to break up big banks; EverBank Financial in advanced talks to be acquired for $19.50 per share

"Whenbig banks get too risky, break 'em up," said Sen. Elizabeth Warren,D-Mass., during her keynoteaddress at the opening night of the Democratic National Conventionin Philadelphia yesterday. She said presumptive Democratic presidential nomineeHillary Clinton "will fight to hold big banks accountable." FormerDemocratic presidential hopeful Bernie Sanders likewise called for splitting upbig banks in a speech following Warren's at the convention.

Inmore government and regulatory news:

Astudy conducted by the U.S. Government Accountability Office on the CFPB's newmortgage-servicing rules found that while community banks and credit unionsreported that the new rules entailed additional costs, they still engage inmortgage servicing due to therevenue it generates; the new rules also appeared to be unlikely toaffect most community lenders' decisions to retain or sell mortgage servicingrights. The GAO also pointed out that the bureau's plans for retrospectivelyreviewing its mortgage-servicing rules are incomplete.

Meanwhile,the CFPB has given the financial industry extra time to comment publicly on itsproposed payday loanrule, with the new deadline being Oct. 7.

Aninvestigation intoleaked Federal Reservedocuments that led to the conviction of former Goldman Sachs Group Inc. employee Rohit Bansal couldlead to action against the bank, say sources for The New York Times. The bank is expected to pay a penalty of lessthan $50 million.  

In earnings news, reported second-quarter netincome from continuing operations attributable to common shareholders of$193 million, or 23cents per share, compared to $230 million, or 27 cents per share, in theyear-ago period. During the second quarter, the company incurred merger-relatedexpense totaling $45 million, or 4 cents per common share, compared to $24million, or 2 cents per common share, in the previous quarter.

KKR & Co.LP, Ally FinancialInc., PopularInc., T. Rowe Price GroupInc. and FirstMeritCorp. are also reporting their results today.

Onthe subject of banking:

EverBankFinancial Corp said it is in advanced negotiations with a financialservices company to beacquired for $19.50 pershare.

Washington,N.C.-based First SouthBank is buying a portfolio of mortgage servicing rights of 452Freddie Mac and Fannie Mae loans, which have an unpaid principal balance ofapproximately $84.6 million.

engaged KeefeBruyette & Woods to help it identify and assess strategic options andoperating scenarios to maximize shareholder value, including a .Activist investorJoseph Stilwell had earlier called on the Lacey, Wash.-based company'smanagement to find a "suitable merger partner."

is its tech-focused lendingafter credit costs in the lending segment hit the company's second-quarterearnings. Chairman, President and CEO Stephen Gordon said that volatility intech markets had driven low returns in the company's portfolio, and thatprovisions related to downgrades in its tech portfolio had masked positive developmentsin the rest of the company's results.

In people news:

chief legal officerand corporate secretary Heather Koenig late last week, sources told The Wall Street Journal.

Meanwhile,unexpected family matters prompted Tri-State Bank of Memphis CEO Christine Munson toleave the bank inJuly, the Memphis Business Journalreports.

CFO Richard Spenceris set to become CEO of the Whitman, Mass.-based bank by the end of 2016.Incumbent CEO and Chairman Glen White will retire in December, the Boston Business Journal reported.

Bridgehampton,N.Y.-based Bridge BancorpInc. named Principal Accounting Officer and CFO Howard Nolan toserve as COO, withJohn McCaffery set to take over as CFO. The appointments are both for thecompany and its unit, Bridgehampton National Bank.

SantaBarbara, Calif.-based American Riviera Bank named Eusebio Cordova senior vicepresident and chief creditofficer.

AndMaddock, N.D.-based North StarCommunity Credit Union named Robert Herrington , replacing CindyHegland, who retired, Minot (N.D.) Daily News reports.

Inthe fintech space:

BloombergNews reports that Miami-Dade Circuit Judge Teresa Mary Pooler has dismissedmoney-laundering charges against Michell Espinoza who was caught selling morethan $1,500 in bitcoins to undercover detectives. Pooler said in her rulingthat bitcoin is "not tangible wealth and cannot be hidden under a mattresslike cash and gold bars."

In other parts of the world

Asia-Pacific:Julius Bär hires 200 managers inAsia; Dai-ichi Life to open Cambodian office

Europe:Spotlight on Commerzbank capitalcushion; H1 profit tumbles at Man; New UniCredit execs

MiddleEast & Africa: Saudi group,banks ink key debt restructuring deal; Fitch acts on EMEA sovereigns

The day ahead

Early morning futures indicators pointed to a mixed openingfor the U.S. market.

In Asia, the Hang Seng rose 0.62% to 22,129.73, and theNikkei 225 was down 1.43% to 16,383.04.

In Europe as of midday, the FTSE 100 was up 0.34% to6,730.98, and the Euronext 100 fell 0.26% to 868.22.

On the macro front

The Redbook, the S&P Case-Shiller HPI, the new homesales report, the consumer confidence report, the Richmond Fed ManufacturingIndex and the State Street Investor Confidence Index are due out today. TheFederal Open Market Committee meeting is also scheduled to begin today.

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