Monday Morning Cup of Coffee: Mega banks tap loan-loss reserves; MBA 100th kicks off
Monday Morning Cup of Coffee is a quick look at the news coming across the HousingWire weekend desk, with more coverage to come on bigger issues.
Federal regulators warned banks to remain cautious about padding profits with money set aside to cover soured loans, but some of the biggest institutions did much more of that in the third quarter when compared to earlier this year.
The nation’s largest banks by assets – including JPMorgan Chase (JPM), Wells Fargo (WFC) and Bank of America (BAC) – recorded nearly $5 billion in loan-loss reserves in the third quarter, up by roughly a third from both the second quarter and year-ago adjustments, according to the Wall Street Journal.
The move comes during a time when banks are being slammed by revenue slowdowns, thanks to plunging mortgage lending and trading activity.
The MBA’s 100th Annual Convention kicked off in Washington D.C. Sunday, with thousands of attendees descending on Capitol Hill. HousingWire editorial has boots on the ground and coverage is already underway.
Stay tuned to HousingWire for more updates from the conference.
More than five years after the housing meltdown, the list of banking tycoons blamed by the public for the crisis is now longer than ever.
However, the list is small when it comes to top managers that were hit with a jury verdict for pushing dubious mortgages, the New York Times reports.
Bank of America mid-level executive Rebecca Mairone is the newest member to the list. She was held liable by a federal jury for allegedly saddling Fannie Mae and Freddie Mac with bad mortgages, resulting in more than $1 billion in losses.
The government shutdown that took place over 16 days, involving a federal shutdown and debt ceiling crisis, may prove popular for homeowners.
The stalemate removes even a remote possibility that Congress may undertake tax changes curtailing housing-related tax breaks this year and the beginning of next year, the LA Times writes.
This means mortgage interest deductions, local property tax write-offs and second-home deductions are safe, for now — despite a tax overhaul package taking final shape in the House.
The Federal Deposit Insurance Corp. reported no bank closings for the week ending Oct. 27.