This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Things That Could Move Bank Stocks Today

Stocks in this article: BAC JPM WFC GS MS XLF

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report) is planning to charge basic checking account customers a monthly fee unless they agree to a number of services, the Wall Street Journal reports.

Under the change, Bank of America will charge customers anywhere between $6 to $25 -- depending on the level of account -- but would allow them to avoid fees if they sign up to other bank services such as credit cards or mortgages. Customers could also avoid the fee with a minimum balance, the article states.

Banks have been pummeled by a series of regulations curtailing fees over the past 18 months. Last year banks were hit with the Durbin Amendment, which cut interchange fees charged to merchants for processing debit card purchases. Just last week Consumer Financial Protection Bureau Director Richard Cordray announced that he would investigate lucrative checking account overdraft fees.

KBW analyst Fred Cannon said in a note this week that "banks must find another avenue for fee income growth in order to expand ROEs, if no other variables change."


Federal Reserve Chairman Ben Bernanke will continue his testimony on monetary policy before the Senate Committee on Banking, Housing and Urban Affairs.

On Wednesday, equities and especially gold pulled back after the central bank chief suggested that improvements in the economy may lessen the need for stimulus.

Bernanke also made other comments on financial reform. He said the Volcker rule was likely to be postponed past the initial July 2012 deadline. The controversial rule that seeks to limit banks from taking too much risk with their capital has attracted criticism from various quarters of Wall Street as well as from foreign governments who also wish their sovereign debt markets to be exempt from the rule.

The rule affects banks with capital markets operations and is expected to have the most impact on pure-play investment banks such as Goldman Sachs (GS) and Morgan Stanley (MS). The Chairman said the regulator has received 17,000 comments on Volcker.


The foreclosure deal between the 50 states and the nation's biggest banks including Bank of America, JPMorgan Chase (JPM - Get Report), Citigroup (C), Wells Fargo (WFC - Get Report) and Ally Financial, may cause investors in mortgage bonds to lose confidence in their holdings and avoid investing, the Financial Times reported, citing a report by Fitch Ratings to be published Thursday.

The banks are being asked to make principal reductions on mortgages owed by underwater borrowers, including those sold to investors, as part of the deal. But some investors feel they are being penalized for mistakes made by banks and do not want to bear the cost of the settlement.

The settlement in any case is yet to be finalized. However, if investors are adversely affected by the principal reductions, their confidence might take a beating and it would eventually prevent the transition from a government-sponsored mortgage market to one that is privately backed.  

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs