Despite the turmoil in the subprime mortgage market, the five largest U.S. investment banks reported strong quarterly earnings in the second quarter, according to Fitch Ratings.Fitch attributed the positive results to four factors: product diversity, hedging, growing geographic diversity, and capital sufficiency. "While mortgage exposure exists throughout investment banks' franchises, each firm says that fewer than 5% of total net revenues are attributable to subprime mortgage activities," said Leslie Bright, a Fitch senior director. "Since May, unusual levels of credit deterioration have been concentrated in the subprime space, impacting underwriting and primary trading markets. Contagion to the alt-A and prime sectors has greater possibility, as does fallout in the secondary market following pending rate resets of vintage mortgage pools."
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Government officials confirmed the California Democrat is under scrutiny over a long-held Maryland property he designated as a second home in 2020.
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Credit availability declined in June as the job market and rising delinquency figures have some lenders concerned, the leading mortgage trade group said.
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The Ocean State is the latest to enact rules prohibiting the agreements that end up tying older homeowners to long-term contracts with real estate brokers.
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CEO Robin Vince refused to comment on "rumors or speculation" about a potential merger between the custody banking giant and its smaller rival, Northern Trust. He also said that the bar for BNY to engage in M&A is "very high."
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House Financial Services Committee Chairman French Hill promised to begin combing through Dodd-Frank to find areas for deregulation, while the panel's ranking member made it clear that Democrats would fight for the Consumer Financial Protection Bureau.
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Gain on sale at JPMorgan Chase fell by 5 basis points in the second quarter, which could be a slightly adverse sign for mortgage banker results, KBW said.
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