Financials, Energy & Natural Resources – Trefis Picks of the Week
Below is a summary of featured articles across the financials, energy, and natural resources sectors that investors may find useful. We look at the effect of Japanese earthquake on AIG (NYSE:AIG), the impact of upcoming European regulations on MetLife (NYSE:MET) and Bank of America‘s (NYSE:BAC) clash with the Federal Reserve and JPMorgan‘s (NYSE:JPM) role in the AT&T – T-Mobile deal. In the energy space we look at Anadarko‘s (NYSE:APC) decision to buy BP’s assets for $575 million.
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Credit Suisse, Morgan Stanley, and Barclays are each seeking group of investors to counter AIG’s $15.7 billion bid for a pool of mortgage bonds held by the Federal Reserve Bank of New York.
Chartis Pulls Down AIG, “Annuity News Journal”
Policy sales in the US dropped by 9% in 2010 after dropping by 16% in 2009. American International Group’s efforts to prove that its turnaround is on track suffered a setback as the Chartis unit suffered a $4.0 billion loss in the fourth quarter of 2010.
AIG sees minimal effects from Japan company claims, “Business Week”
AIG said that potential losses from claims related to the earthquake in Japan filed with Fuji Fire and Marine Insurance Co. are expected to have “minimal” effects on the financial position of AIG’s Japanese operations. The maximum possible loss it could sustain from those claims is about $508 million.
AIG has offered $15.7 billion for the residential mortgage-backed securities in the Maiden Lane II portfolio. These assets were taken by the Fed in the darkest days of the AIG bailout to secure a $22 billion loan that was part of the broader bailout. The remaining value of the assets is $14 billion, so the $15.7 billion offer from AIG would mean the Fed would clear about $1.5 billion in profit on the assets.
MetLife Inc., the largest U.S. life insurer, said it is financing hotels after loans in the lodging industry rebounded more strongly than apartment mortgages.
Regulation: MetLife, “The Lawyer”
By the end of 2012 the EU’s Solvency II Directive is expected to go live and will change the way insurance companies operate. While the new regime is still being finalized, insurance giants such as MetLife Assurance have been preparing themselves for some time.
Bank of America (NYSE:BAC)
Bank of America said the Fed had vetoed its plans for a modest dividend increase in the second half of 2011. It is a serious setback for a company that has been struggling to win back the confidence of shareholders.
Bank of America: Fee initiative testing well, “The Arizona Republic”
A Bank of America initiative to realign fees on checking and other accounts is proceeding well in Arizona and two other pilot states, a bank official said.
JPMorgan Chase (NYSE:JPM)
JPMorgan beating Goldman in league tables, “Fierce Finance”
JPMorgan seems to be besting Goldman Sachs at its own game. JPMorgan has “extended its market-share lead over Goldman Sachs in mergers advice after AT&T beat out Sprint Nextel to buy” Deutsche Telekom’s U.S. wireless unit T-Mobile for $39 billion.
JPMorgan Chase & Co.’s CEO cemented his firm’s spot as the top U.S. mergers-and-acquisitions bank over Goldman Sachs Group Inc. with the March 20 announcement that it’s advising AT&T on a $39 billion bid for Deutsche Telekom AG’s U.S. wireless unit, T-Mobile USA Inc. New York-based JPMorgan committed to providing $20 billion to AT&T.
Capital One (NYSE:COF)
Capital One Financial Corp.’s charge-offs fall, “Business Journal”
Capital One reports a February charge-off rate for its U.S. credit card business of 5.9 percent, down from 6.79 percent in January. Charge-offs at its auto loan business fell to 1.97 percent, from 2.62 percent the previous month.
India card Rupay like Visa, MasterCard proposed, “India Today”
After almost two years of planning, the National Payments Corporation has at last finalized the proposed unique India Card which once commercially launched would be an domestic alternative to the global real-time payment processing firms like Visa and MasterCard.
Mobile Payments: Creative Chaos or Just Chaos?, “PC World”
While mobile payments in other parts of the world, including Japan and Europe, appear to be taking shape though coordination among major wireless carriers selling smartphones, the banks and local retailers, the U.S. sometimes resembles more of a behind-the-scenes brawl.
Energy & Natural Resources
Anadarko to buy BP Colorado plant for $575M, “Business Journal”
Anadarko said Tuesday that it had agreed to purchase the Wattenberg Processing Plant in northeast Colorado from BP for about $575.5 million.