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  • Wells Fargo reaches $110 million class action settlement over fake accounts

    The fallout from Wells Fargo's fake account fiasco is far from over, as the bank announced late Tuesday that it reached a $110 million settlement in a class action lawsuit brought on behalf of the bank’s customers who had a fake account opened in their name. Click the headline to read more about the settlement.

BlackRock profit up 34% in 1Q

Money manager BlackRock Inc. (BLK) saw its profit grow 34% during the first quarter as performance fees grew alongside demand for BlackRock Solutions. BlackRock Solutions is a third-party risk assessment subsidiary and enterprise investment service of BlackRock. By the end of March, BlackRock had $3.65 trillion in assets under its management, up $87.5 billion from the previous quarter. New York-based BlackRock Solutions, which was retained to handle the sale of American International Group subprime mortgage bonds owned by the Federal Reserve, posted a profit of $568 million, or $2.89 per share, on revenue of $2.28 billion in 1Q. The company beat the average analyst forecast of earnings in the $2.75 per share range, according to Yahoo! Finance. That compares to a profit of $423 million, or $2.17 per share, on revenue of nearly $2 billion in the same quarter of 2010. Since the middle of March, BlackRock Solutions has assisted the Fed in the sale of billions of dollars in AIG subprime bonds. “I am very pleased with our year-over-year growth in revenues and adjusted earnings per share, driven by strong investment performance, robust new business in long-term products, increased demand for BlackRock Solutions, and continued expense discipline,” said Laurence Fink, chairman and CEO of BlackRock. “Our new business results, including $82.4 billion in the pipeline, are a direct result of the differentiated value we are delivering for our clients.” Fink said a general lack of confidence in where the market is going resulted in the company obtaining more business from clients. “In a quarter marked by greater economic and political uncertainty, investors sought more advice about long- term investment themes,” he said. Write to Kerri Panchuk.


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