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OneMain may sell itself; CIT inks deal to sell reverse mortgage servicing biz

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OneMain may sell itself; CIT inks deal to sell reverse mortgage servicing biz

The banking industry's third-quarter earnings season begins this week, with JPMorgan Chase & Co. and Citigroup Inc. set to announce results Oct. 12, and Bank of America Corp. and Wells Fargo & Co. slated to report results Oct. 13.

Analysts expect JPMorgan and Citi to report higher earnings year over year. JPMorgan reported earnings per share of $1.58 in the third quarter of 2016, and the S&P Capital IQ consensus estimate for normalized EPS in the third quarter of 2017 is $1.65. Citi, meanwhile, reported EPS in the 2016 third quarter of $1.24, and the consensus EPS estimate for the 2017 third quarter is $1.31.

CIT Bank NA has reached a deal to sell its reverse mortgage servicing business, Financial Freedom, as well as its reverse mortgage portfolio, to an undisclosed buyer. The sale is in line with CIT Group Inc.'s plan to simplify the company.

Pacific Western Bank in Beverly Hills, Calif., paid $1.75 million to resolve claims that First California Bank — which PacWest Bancorp acquired in 2013 — facilitated an embezzlement scheme by failing to monitor Kinde Durkee's account, The Associated Press reports. Durkee was imprisoned in 2012.

And OneMain Holdings Inc.'s OneMain Financial Holdings Inc. is looking to sell itself and is already in advanced talks with a number of rival specialty lenders and private equity firms, sources told The Wall Street Journal. The deal could be worth $4 billion or more, the report adds.

In other parts of the world

Asia Pacific: Far Eastern International Bank hacked; SBI Life gets nod to open Bahrain branch

Europe: EC antitrust raids; HSBC chooses new CEO; Deutsche Börse in euro clearing push

Middle East & Africa: S&P revises Ghana outlook; Iran unveils fintech policy; US lifts Sudan sanctions

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng was down 0.46% to 28326.59. The Nikkei 225 climbed 0.30% to 20,690.71.

In Europe as of midday, the FTSE 100 slid 0.21% to 7,507.14, while the Euronext 100 was up 0.06% to 1,043.92.

On the macro front

The TD Ameritrade Investor Movement Index is due out today.

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