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BofA, Charles Schwab report earnings


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BofA, Charles Schwab report earnings

Earnings reports out early today: 's and 's.

BofA reportedsecond-quarter net income applicable to common shareholders of $3.87 billion,or 36 cents per share, compared to $4.80 billion, or 43 cents per share, in theyear-ago period. Provision for credit losses increased to from $780 million in theyear-ago period due to a slower pace of improvement in the consumer portfolio.

In banking news:

's minimumwage-earners are getting araise. Theannouncement has generated much criticism and maybe some goodwill. Meanwhile,Wells Fargo & Co.alreadypays at least $12 an hour and CitigroupInc. about $13, Reuters reports.

In any case, JP Morgan isn't only busy addressing income inequality.It's been hired by the Italian government to set up a badbank, according to the U.K.'s SundayTelegraph, in the push to help the European country's lenders get rid of theirsour loans.

And Wells Fargo got an appeals court to upholdthe decertification of a class action suit — that began all the way back in2001. Joseph Mazzei had sued over late fees he claimed were improperly chargedby The Money Store and HomEq. Wells, as acquirer, was held accountable by ajury in December 2014. But, in May 2015, Judge John Koeltl ruled that the $54.8million verdict was void and that the suit should not have been given class-actionstatus. The plaintiffs' lawyer told Reuters it was an "unprecedented"overturning of a jury verdict "under the guise of reviewing classcertification."

In Missouri,Legends Bank ($307.1million as of June 30) will merge with HomeSavings Bank ($24.1 million as of March 31).

Carver Bancorp Inc.,which entered into a writtenagreement with the OCC in May, discovered a material error thatwill require it to restatefiscal 2015 earnings. The New York-based company had posted net income of$364,000, or 10 cents per share.The restatement will show a net loss. For fiscal 2014, Carver reported a netloss of $836,000, or 23 cents per share.

Speaking of the OCC, its updated list of terminated includes thoseagainst U.S. Bank NA,Colorado Federal Savings Bank,Denver-based Native American BankNA and Ponce De LeonFederal Bank of New York.

Credit unions:

Briarwood,N.Y.-based Melrose Credit Unionfired CEO AlanKaufman.

Asset managers also have recent executiveannouncements:

hired to be its CFO.

promoted Jeff Krumpelmanto chief investment officer.

Meanwhile,sources for The New York Times sayBridgewater Associates LPhas recently been cancelingrecruitment interviews and negotiations.

And has joined online marketplace as chief capitalofficer.


The CFPB hasscheduled a field hearing on debtcollection. It will be held in Sacramento, Calif., on July 28.

FINRA namedJohn Brennan its nextchairman.

In Canada, thehousingbubble has attracted the Revenue Agency's attention. It will bescrutinizing deals where taxes may have been underpaid, and Reuters notes thiscomes amid pressure to deal with the inflow of Chinese investors. TheGlobe and Mail, citinga government document, reports the Canada Revenue Agency is working with theFinancial Transactions and Reports Analysis Centre on "lifestyleaudits." On the other hand, PacificInvestment Management Co. LLC's Ed Devlin told Business NewsNetwork: "I thought 20 years ago Londonprices were lofty and probably unsustainable. How incorrect was that?"

And, technology:

Smartwatchesand fitness trackers can help hackers figure out ATMPINs. CU Today, citing research from the Stevens Institute of Technology,reports the motion-detecting software makes it so easy that hackers could getthe PIN right 80% of the time — on just the first try.

In other parts of the world

Asia-Pacific:Korea Eximbank issues NZ$350Mbonds; Deutsche Bank eyes Asia growth

Europe:Italy's €50B bank bailout plan;Deutsche Bank branch closures; Turkey's financial stability measures

Middle East& Africa: National Bank ofKenya ex-CEO arrested; Saudi's NCB, Riyad Bank report Q2 profits

The day ahead

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

In Asia, theHang Seng rose 0.66% to 21,803.18.

In Europe,around midday, the FTSE 100 was up 0.25% to 6,685.84 but the Euronext 100 0.23%lower to 862.86.

On the macro front

TheNational Association of Home Builders' housing market index and the TreasuryInternational Capital report are due out today.

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