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Chicago may pursue Wells Fargo over predatory lending; Wedbush faces SEC charges


According to Market Intelligence, February 2023


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Chicago may pursue Wells Fargo over predatory lending; Wedbush faces SEC charges

A federal judge denied Bank of America Corp.'s request to dismiss a FDIC complaint demanding the bank to pay at least $542 million in assessments, Bloomberg News reports. The FDIC alleged that Bank of America NA underreported its counterparty exposures, which resulted in smaller payments to the FDIC's deposit insurance fund. In May 2017, the regulator increased the money it is seeking over the dispute to $583 million.

U.S. District Judge Gary Feinerman ruled that Illinois' Cook County, which includes Chicago, may pursue its complaint against Wells Fargo & Co. over allegations of predatory mortgage lending targeting black and Hispanic borrowers in Chicago, Reuters reports. Feinerman, however, narrowed the complaint, dismissing several claims of harm from lost property taxes, racial segregation and other factors, which he said "flow far beyond" the company's alleged misconduct.

And Goldman Sachs Group Inc. is the financial adviser for the sale of TNT Crust, the pizza crust business of U.S. meat processor Tyson Foods Inc.

Meanwhile, European Commissioner for Competition Margrethe Vestager's investigation of stock ownership may include large U.S. asset managers, like BlackRock Inc., according to an op-ed piece in The Wall Street Journal. Vestager had earlier said that large asset managers that own shares in multiple companies within the same industry might not find fierce competition appealing.

Broker/dealer Wedbush Securities Inc. is facing SEC charges for allegedly failing to supervise Timary Delorme, an employee the agency found to have benefited from investing client money in microcap stocks related to a "pump-and-dump" scheme. A separate order also found Delorme in violation of antifraud provisions of federal securities laws. He agreed to pay $50,000 in penalty, subject to industry and penny stock bars, and cease and desist from future violations.

In other parts of the world

Asia Pacific: South Korea's ING Life draws interest; 2 Chinese firms post higher FY'17 results

Europe: More banks reveal UK gender pay gap; Deutsche Bank to sell certain Portugal ops

Middle East & Africa: Orange Bank eyes African expansion; South Africa a long way from S&P upgrade

The day ahead

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

In Asia, the Hang Seng was down 2.34% to 30,070.29, and the Nikkei 225 was down 1.34% to 21,031.31.

In Europe, as of midday, the FTSE 100 was down 0.17% to 6,987.95, and the Euronext 100 had fallen 0.68% to 995.15.

On the macro front

The Bank Reserve Settlement report, the MBA mortgage applications report, the GDP report, the international trade in goods report, the pending home sales index, the EIA petroleum status report and the Farm prices report are due out today.

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