Tag Archives: U.S. Bancorp

Here’s why the fifth-largest commercial bank in the U.S. has been given a top rank on the World’s Most Admired list for the ninth year in a row.

The banking industry is currently facing steady headwinds, but that did not stop U.S. Bancorp from a profitable third quarter.

Wells Fargo, U.S. Bancorp, and PNC Financial Services Group all continued what JPMorgan Chase started, reporting increased mortgage activity for the second quarter of 2016.

Most banks and other financial firms reported dismal first quarters compared to a year ago. U.S. Bancorp was different, however.

U.S. Bancorp and the PNC Financial Services Group Inc., reported Friday morning that net income at both banks is down from the previous year, and the results for mortgage banking revenues at both banks followed right along.

Bank of America reported a net income of $5.3 billion for Q2, more than twice the bank's net income from the same quarter in 2014, according to the bank's Q2 2015 earning statement released Tuesday. U.S. Bancorp and PNC also posted solid growth in Q2 with net incomes of $1.48 billion and $1.0 billion, respectively, Tuesday in their earnings statements.

Once the fourth-largest investment bank, Lehman Brothers Holdings Inc. was hit hard by the subprime mortgage crisis and filed bankruptcy in 2008. According to the Wall Street Journal, the company is making headlines again by filing suit against three financial institutions—Syncora Holdings Ltd., U.S. Bancorp, and GreenPoint Mortgage Funding, Inc.—in an attempt to disallow “duplicate” claims emerging from crisis-era loans.

A federal judge dismissed claims in lawsuits against U.S. Bancorp and Bank of America accusing the two banks of failing in their duties as trustees for residential mortgage-backed securities that were allegedly found to have defects after they were sold, causing billions of dollars in losses to investors.

According to a motion filed with New York's Southern District Court, Bank of America and US Bancorp agreed to pay $69 million to a number of state and local pension funds that lost millions from their investment in MBS purchased from Washington Mutual before its collapse in 2008.

With the second-quarter earnings season mostly done, financial services firm Keefe, Bruyette & Woods (KBW) reports that mortgage bankers tracked in its coverage saw a 22 percent increase in volumes from the first quarter to the second. "We view the mortgage results for the banks that have already reported 2Q earnings as largely in line with expectations," KBW commented.