Wells Fargo Faces Overdraft Woes; JPMorgan Helps Vets: Finance Winners and Losers

NEW YORK (TheStreet) -- General Electric (GE) closed a deal, Wells Fargo Corporation (WFC) may get dinged for aggressive overdraft policies, JPMorgan Chase (JPM) found a way to help veterans and Wall Street overall remains eager for higher interest rates.

On Monday night Goldman Sachs (GS) outlined a cautious view of labor-market growth, which would hint that the Federal Reserve may be slower to raise rates than the banks would like. Meanwhile, Bank of America (BAC) issued its own report that said a September rate hike was likely, though subsequent hikes would be slower than they were in previous cycles. 

Bloomberg weighed in on the rate-raising fray by talking about how some banks are changing the way they classify mortgage-backed securities on their books in anticipation of a rate-hike. Under rules that went into effect in 2013, unrealized gains and losses on assets marked "available for sale" would now affect banks' capital levels. (Remember: when rates go up, bond prices go down.) 

Bloomberg reports that there has been an 8.4% increase in banks marking these assets as "hold to maturity" -- meaning they won't be recording swings in asset prices.

One plus one equals whatever you want it to, as one of my favorite accounting jokes goes.


General Electric said the sale of its private-equity lending unit to Canada Pension Plan Investment Board will close in the third quarter, pending regulatory approval.

If you liked this article you might like

These Powerful Corporate Executives Could Make a Run at the Presidency in 2020

PayPal CEO Reveals How Silicon Valley Could Repair Its Broken Culture

How JPMorgan Is Helping Businesses Escape the Prison of Paper Checks

JPMorgan CEO Jamie Dimon Attacks Bitcoin Again

SEC's Cyber-Gaffe Highlights Risk of Trump Budget Cuts at Agency